By Rhee So-eui
HONG KONG (Reuters) - Internet search and game company NHN Corp. (035420.KQ: Quote, Profile, Research, Stock Buzz), operator of South Korea's top search portal, expects strong online game businesses in China and Japan to drive growth this year.
Its Chinese online game joint venture, Ourgame Asset Ltd., is expected to turn back to profit this year after reporting a 33 percent decline in revenue and posting losses in 2005, Namkoong Whon, head of NHN's game operations, said at the Reuters Global Technology, Media and Telecoms Summit in Hong Kong.
"We expect the game business overall to grow 10 to 20 percent this year," Namkoong said.
He expected Ourgame revenue to more than double to 154 million yuan ($19.17 million) in 2006 while forecasting revenue at its Japanese unit, NHN Japan Inc., to grow 60 percent to 8.55 billion yen ($73.68 million).
NHN predicts total revenue will grow 43 percent this year to 510 billion won ($526.8 million) while operating profit jumps 44 percent to 190 billion won, led by its Web advertising and game publishing businesses.
Namkoong said Ourgame's business was hit last year by tightened regulations against foreign game companies in China, aimed at protecting the local game industry.
As some of the limitations are lifted after negotiations, however, he saw the business turning around, Namkoong said.
"(Ourgame) has turned around to profits from the fourth quarter." Continued...
© Thomson Reuters 2008. All rights reserved.
| Paper | Aug 20 - 21, 2008 | Manufacturing |
| Japan Investment | Jul 01 - 2, 2008 | Country Summits |
| Global Real Estate | Jun 23 - 25, 2008 | Real Estate |
| Consumer and Retail | Jun 16 - 18, 2008 | Consumer Retail |
| Investment Outlook | Jun 09 - 12, 2008 | Financial Services / Exchanges |
