KOSDAQFinance036800

Nice Information & Telecommunication

₩8,480▲ 7.21%2026-10-02 close

Market Cap

₩383.6B

Turnover

₩3.7B

Volume

450,000 shares

Shares out.

45.5M

PER

5.6×

PBR

0.8×

EPS

₩1,305

Dividend Yield

—

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Prices as of the 2026-10-02 close

Report overview

Profit Recovery and KIS Integration Phase

NICE Information & Telecommunication is extending an operating margin recovery and profit growth cycle, anchored by the integration of its VAN, PG and TRS businesses and the acquisition of KIS Information & Communication.

1
Consolidated revenue rose for four consecutive years, from KRW 804.9 billion in 2022 to KRW 1,094.7 billion in 2025.
2
The operating margin fell to 4.1% in 2023-2024, recovered to 5.1% in 2025, and reached 6.7% in the second quarter of 2026.
3
Organizational integration of the VAN and PG businesses is underway, following the absorption merger of NICE Payments in the third quarter of 2025 and the acquisition of a 96.1% stake in KIS Information & Communication in 2026.
4
The tax refund service (TRS) and cross-border payment business (PayPro) are growing rapidly on the back of a recovery in inbound foreign tourists.
5
Shareholder return policy has been strengthened through a 9.0% treasury share cancellation, an additional buyback plan, and an expanded payout ratio target.

Business structure

NICE Information & Telecommunication grew out of its core credit-card VAN (value-added network) service and has evolved into a broader payment infrastructure company.

Based on the most recent disclosure, the payment gateway (PG) business accounts for the largest share of revenue at 66.9%, followed by the VAN business at 28.5% and the POS terminal distribution business at 4.6%.

The company spun off its PG division in 2016 to establish NICE Payments, merged NICE Payments with JTNET in 2022, and then absorbed NICE Payments again in the third quarter of 2025, reintegrating its VAN and PG organizations.

The VAN business is the largest offline card-payment infrastructure provider, holding roughly 28% market share, about 1.9 times the share of the second-largest player.

New businesses include NICE TAX FREE, a tax-refund agency service for foreign tourists, and PayPro, a cross-border payment service supporting 44 local payment methods across 20 countries; inbound PayPro transaction volume rose sharply year over year as transactions at major duty-free operators including Shinsegae DF, Lotte Duty Free and Shilla Duty Free increased alongside a recovery in inbound tourism.

In 2026, the company agreed to acquire a 96.1% stake in KIS Information & Communication, a rival VAN operator, marking a move toward industry consolidation.

Competitors in the VAN/PG market include Korea Information & Communication, KSNET, Smartro and Coban, while the online PG market features dedicated PG companies such as Toss Payments, KG Inicis and NHN KCP alongside big-tech affiliated players such as Naver Financial, Kakao Pay and Coupang Pay.

The controlling shareholder group consists of NICE Group affiliates, which have jointly invested in a special-purpose vehicle alongside NICE Information & Telecommunication and NICE Payments to expand equity investments in payment infrastructure companies, pursuing group-wide synergies.

Earnings trend

Quarterly revenue · Operating profit

₩266.7B₩15.6B25Q2₩286.4B₩17.8B25Q3₩284.2B₩12.3B25Q4₩285.7B₩14.9B26Q1₩316.2B₩21.3B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩804.9B₩48.1B2022₩891.6B₩36.7B2023₩975.1B₩39.9B2024₩1.1T₩55.3B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩266.7B	₩15.6B	5.9%
2025Q3	₩286.4B	₩17.8B	6.2%
2025Q4	₩284.2B	₩12.3B	4.3%
2026Q1	₩285.7B	₩14.9B	5.2%
2026Q2	₩316.2B	₩21.3B	6.7%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩804.9B	₩48.1B	₩40.8B	6.0%	13.1%	197.0%
2023	₩891.6B	₩36.7B	₩30.3B	4.1%	9.2%	230.7%
2024	₩975.1B	₩39.9B	₩38.3B	4.1%	10.9%	190.9%
2025	₩1.1T	₩55.3B	₩42.9B	5.1%	10.8%	173.3%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23

Earnings analysis

Consolidated revenue rose for four straight years, from KRW 804.9 billion in 2022 to KRW 891.6 billion in 2023, KRW 975.1 billion in 2024, and KRW 1,094.7 billion in 2025. The operating margin fell from 6.0% in 2022 to 4.1% in both 2023 and 2024, before recovering to 5.1% in 2025.

Profit attributable to owners of the parent declined from KRW 40.8 billion in 2022 to KRW 30.3 billion in 2023, then recovered for two straight years to KRW 38.3 billion in 2024 and KRW 42.9 billion in 2025.

On a quarterly basis, revenue reached KRW 286.4 billion with operating profit of KRW 17.8 billion (a 6.2% margin) in the third quarter of 2025, before revenue softened to KRW 284.2 billion in the fourth quarter with operating profit falling to KRW 12.3 billion (4.3% margin) and owners' net profit dropping to KRW 8.7 billion.

Results improved again in the first quarter of 2026 to KRW 285.7 billion in revenue, KRW 14.9 billion in operating profit and KRW 14.5 billion in owners' net profit, and the second quarter of 2026 posted the strongest results of the five-quarter window, with revenue of KRW 316.2 billion, operating profit of KRW 21.3 billion (a 6.7% margin) and owners' net profit of KRW 18.8 billion.

Owners' net profit summed over the trailing four quarters (Q3 2025 through Q2 2026) reached KRW 57.4 billion, showing a broadly improving trend once the temporary fourth-quarter 2025 dip is excluded.

Operating cash flow jumped from KRW 13.7 billion in 2024 to KRW 163.6 billion in 2025, while the debt ratio eased from 230.7% in 2023 to 173.3% in 2025, indicating a somewhat improved balance sheet.

Industry analysis

The domestic VAN market has an oligopolistic structure dominated by a small number of operators that connect merchants to major card issuers' payment networks, and NICE Information & Telecommunication holds the top position with roughly 28% market share, about 1.9 times the share of the second-ranked operator.

Korea Information & Communication, KIS Information & Communication, Smartro, KSNET and Coban compete in the VAN/PG market.

In the online payment gateway (PG) market, dedicated PG companies such as Toss Payments, KG Inicis and NHN KCP compete alongside big-tech affiliated PG and prepaid-service operators including Naver Financial, Kakao Pay, Viva Republica and Coupang Pay.

Financial authorities are expanding a payment-fee disclosure regime to cover dedicated PG operators as well as combined PG/prepaid operators, reinforcing fee-structure transparency across the industry.

Recovering demand from inbound foreign tourists is cited as a key driver of growth in the tax-refund agency (TRS) and cross-border payment markets.

NICE Group is expanding equity investments in offline payment-network companies through joint contributions to a payment-infrastructure special-purpose vehicle, pursuing a group-wide business reorganization.

Outlook

The company set 'the leading brand in integrated online-offline payments' as its 2026 management goal, presenting the scale-up of its core VAN and PG businesses and accelerated growth of global and digital new businesses as its two strategic pillars.

In 2026 it decided to acquire a 96.1% stake in KIS Information & Communication, a move analyzed as expanding consolidated operating profit.

LS Securities, factoring in this acquisition and the integration effects from the NICE Payments merger, forecast that operating profit would grow 30-60% year over year from the third quarter of 2026 through the second quarter of 2027.

TRS revenue grew from KRW 8.2 billion in 2023 to KRW 36.0 billion in 2025, and was estimated to reach KRW 42.7 billion in 2026.

The company presented a shareholder return policy for 2026-2028 targeting a parent-basis payout ratio of at least 25%, cancellation of at least 1% of shares outstanding annually, and use of at least 5% of parent-basis net profit for treasury share cancellation.

In line with this, the company cancelled 9.0% of treasury shares in June 2026 and announced an additional buyback plan of KRW 3.0 billion.

NICE Group has already executed part of an equity investment in a new payment infrastructure company through a payment-related special-purpose vehicle, indicating that group-wide new business expansion continues.

Valuation

PER

5.6×

PBR

0.8×

ROE

14.7%

EPS

₩1,305

BPS

₩9,456

Dividend per share

—

The current share price stands below the company's most recently disclosed net asset value per share, suggesting it trades at a discount to book value. Recent brokerage reports have moved to raise price targets.

LS Securities stated in an August 21, 2026 report that it maintained its 'Buy' rating on NICE Information & Telecommunication while raising its price target from KRW 8,000 to KRW 10,000, citing expanded consolidated profit from the KIS Information & Communication acquisition and strong growth in the TRS business.

On the earnings side, the company has moved from a margin-contraction phase in 2023-2024 to a recovery phase in 2025-2026, and some observers note that the earnings multiple implied by trailing four-quarter results sits on the lower side relative to price targets brokerages have set at various points.

How the company's stated payout-ratio expansion and treasury-share cancellation policy will actually be reflected in shareholder-return metrics remains something to be confirmed through future dividend and cancellation disclosures.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-23

Bull factors

Profit Growth and Integration Synergies

Consolidated revenue and operating profit have grown steadily in recent years, and cost-saving effects are anticipated from the integration of the VAN and PG organizations through the 2025 NICE Payments merger and the 2026 KIS Information & Communication acquisition.

LS Securities forecast that these integration effects would drive year-over-year operating profit growth of 30-60% from the third quarter of 2026 through the second quarter of 2027. In practice, the operating margin climbed to 6.7% in the second quarter of 2026, confirming the improving trend in actual results.

High Growth in TRS and Cross-Border Payments

Boosted by rising numbers of inbound foreign tourists, TRS revenue grew from KRW 8.2 billion in 2023 to KRW 36.0 billion in 2025, and inbound transaction volume through the cross-border payment service PayPro also increased sharply year over year.

This segment is regarded as capable of relatively high profitability given its combination with the VAN merchant network. As long as tourism demand holds up, there is room for continued revenue expansion in this business.

Strengthened Shareholder Return Policy

The company presented a multi-year shareholder return policy targeting a parent-basis payout ratio of at least 25%, annual cancellation of at least 1% of shares outstanding, and use of at least 5% of parent-basis net profit for treasury share cancellation over 2026-2028.

In line with this, it had already cancelled 9.0% of treasury shares in June 2026 and announced an additional buyback plan of KRW 3.0 billion. If executed as planned, this policy could contribute to per-share metric improvement through a reduction in shares outstanding.

Bear factors

Quarterly Earnings Volatility

There is quarter-to-quarter earnings volatility, as seen in the fourth quarter of 2025 when operating profit and net profit declined sharply from the prior quarter. The possibility of recurring one-off costs related to mergers and acquisitions or inefficiencies during organizational integration cannot be ruled out. This volatility is a reason to examine quarterly trends alongside the annual earnings trajectory.

Intensifying Competition and Integration Limits

The VAN/PG market has numerous competing operators, and because merchants often use more than one VAN provider simultaneously, some analysts note that even after the KIS Information & Communication acquisition, the two brands may continue to operate in parallel rather than being fully merged. This suggests the expected integration synergies could turn out to be more limited than the market anticipates.

Fee Regulation Pressure

Financial authorities have been tightening related regulations, including expanding the payment-fee disclosure regime to cover dedicated PG operators and combined-service providers, and there is a possibility of continued pressure to lower merchant and PG fees. This could weigh on profitability in the VAN and PG segments.

Risk factors

M&A Integration Risk

The acquisition of KIS Information & Communication is still going through completion procedures, and some brokerage earnings estimates have stated that M&A effects have not yet been fully reflected.

If the integration timeline is delayed or expected synergies fall short, future earnings estimates could be revised downward.

Governance and Insider Share Changes

There was a disclosure that CEO Kim Seung-hyun, appointed in March 2024, sold his entire shareholding. While executive share sales may not necessarily be directly tied to company fundamentals, investors need to continue monitoring future disclosures on shareholding changes.

Dependence on Tourism and Consumption Demand

Growth in the TRS and cross-border payment segments is heavily dependent on demand from inbound foreign tourists, so growth rates could vary depending on external factors such as exchange rates, regional geopolitics, and changes in tourism policy. If tourism demand slows, the revenue contribution from this segment could decline.

What to watch next

Mid-November 2026
The third-quarter 2026 earnings release will show whether the 30-60% year-over-year operating profit growth projected by LS Securities is actually being met.
In the second half of 2026
The completion timing of the 96.1% stake acquisition in KIS Information & Communication and whether it has been reflected in the consolidated financial statements should be confirmed.
At the fourth-quarter 2026 earnings disclosure
It will be worth checking whether TRS revenue is approaching the full-year estimate of KRW 42.7 billion and whether inbound tourist demand is holding up.
From the fourth quarter of 2026 onward
Actual execution of the additional KRW 3.0 billion buyback and the annual cancellation plan of at least 1% of shares outstanding should be confirmed through disclosures.
From the second half of 2026 onward
Progress on equity investments in payment infrastructure companies through the NICE DWR special-purpose vehicle and the performance of related new businesses should continue to be monitored.

Overall view

NICE Information & Telecommunication is restructuring its business through the NICE Payments merger and the KIS Information & Communication acquisition while maintaining its position as the leading VAN operator.

Annual results showed margin contraction in 2023-2024 followed by a recovery through 2025 and the first half of 2026, with recent quarterly results supporting that improving trend.

The rapid growth of new businesses such as TRS and cross-border payments, driven by inbound tourism demand, is a positive factor, but tourism demand volatility and tightening fee regulation remain potential headwinds.

The company has presented a multi-year shareholder return policy including treasury share cancellation and buybacks along with an expanded payout ratio, and whether this is implemented will need to be confirmed through future disclosures.

The completion timing of the KIS Information & Communication acquisition and the actual degree of integration synergy realized remain key variables for future earnings estimates. Governance-related matters, including the CEO's past share sale, also warrant continued attention.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

Show 18 more articles and sources

Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.