[THE INVESTOR] Korean online game and service provider NHN Entertainment is expected to see its profits slowing in the latter half of this year due to increased marketing costs for new services.

Korea Investment & Securities predicted on July 14 that the company would post 215.8 billion won (US$189.51 million) in sales and 12 billion won in operating profit in the second quarter.

“The company’s key games are generating stable profits,” said Kim Sung-eun, an analyst of the local bourse. “In the second quarter, the company reduced marketing costs for its payments service Payco to some 15.5 billion won.”

But the analyst pointed out that the company could experience less profits in the latter half of this year when the marketing costs increase.

“With enhanced competition in the mobile payments market, the company could see less users while spending more on marketing.”

By Lee Ji-yoon (jylee@heraldcorp.com)