Naver’s Third Quarter Performance Maintains Growth Trend
In its third quarter performance report for 2023, Naver, the leading Korean internet company, has maintained its growth trend compared to the same period last year. Despite stagnant search sales, the company has seen positive results in its new businesses such as commerce, content, and cloud services.
Strong Financial Results
Naver reported consolidated sales of KRW 2.4453 trillion and operating profit of KRW 380.2 billion for the third quarter. Sales increased by 1.6% compared to the previous quarter and 18.9% compared to the same period last year. Operating profit also showed growth, increasing by 2.0% compared to the previous quarter and 15.1% compared to the same period last year.
Focus on Artificial Intelligence (AI) Business
Naver CEO Choi Soo-yeon highlighted the successful introduction of their productive AI service line and financial roadmap in the third quarter. The company aims to continue its growth in all areas by promoting model technology projects, such as digital twin, in Saudi Arabia. Naver plans to leverage its technological capabilities to accelerate its global challenges and expand its services.
Increased Sales in Various Business Segments
All of Naver’s business segments showed growth compared to the same period last year. The search platform recorded sales of KRW 898.5 billion, commerce reached KRW 647.4 billion, fintech achieved KRW 340.8 billion, content sales were KRW 434.9 billion, and cloud services generated KRW 123.6 billion in sales. Specifically, commerce and content segments showed significant increases of 41.3% and 39.5% respectively.
Detailed Financial Breakdown
Operating profit varied by business segment in the third quarter. The search and commerce platform segments earned an operating profit of KRW 493.3 billion, while fintech recorded an operating profit of KRW 33.4 billion. However, content and cloud segments reported operating losses of KRW 62.1 billion and KRW 87 billion respectively.
Successful Strategies in Search and Trade Businesses
Naver’s search platform business managed to offset the weakness in the online advertising market through effective platform promotion and place advertising strategies. The number of advertiser places reached 130,000 in the third quarter, contributing to search sales of KRW 688.2 billion and display sales of KRW 206.7 billion. Though searches fell 0.1% compared to the previous quarter, they increased by 3.5% compared to the same period last year. Display sales, however, experienced a decrease of 4.9% compared to the previous quarter and 9.5% compared to the same period last year.
The trade business segment also performed well, with sales of trade advertising reaching KRW 282.4 billion, broadcasting and sales at KRW 321.1 billion, and membership generating KRW 44 billion in sales. Trade advertising increased by 0.7% compared to the previous quarter and 5.5% compared to the same period last year. Broadcasting and sales achieved even more significant growth, increasing by 3.5% compared to the previous quarter and 105.0% compared to the same period last year. Membership also showed positive results, with a 4.3% increase compared to the previous quarter and a remarkable 29.7% increase compared to the same period last year. The success of cream-related businesses, including brand stores and travel services, contributed to the growth in broadcast sales and sales. The merchandise transaction volume reached KRW 11.9 trillion in the third quarter.
Fintech and Content Drive Revenue
Notably, Naver’s fintech segment demonstrated strong performance, with payment volume (TPV) exceeding KRW 15 trillion in the third quarter. External payment amount increased by 10.8% compared to the previous quarter and 45.8% compared to the same period last year, reaching KRW 6.9 trillion. Offline payment amount recorded was KRW 1.7 trillion, with the partnership with Samsung Pay contributing to its success.
Webtoons have been a driving force for Naver’s content segment, with sales of popular webtoons like Gwê, Snow, and Another totaling KRW 379.8 billion, KRW 49.5 billion, and KRW 15.6 billion respectively. Webtoon sales increased by 2.8% compared to the previous quarter and an impressive 41.5% compared to the same period last year. The webtoon transaction amount also saw growth, reaching KRW 479.4 billion, a 37.8 billion won increase from the previous quarter. Naver’s efforts to strengthen the platform and incorporate intellectual property (IP) rights and AI recommendations into their works have proven to be effective in driving growth.
Cloud Services Show Promise
Naver’s cloud services segment recorded business-to-business (B2B) sales of KRW 110.5 billion and other sales of KRW 13.1 billion. B2B sales increased by 11.4% compared to the previous quarter and 19.9% compared to the same period last year. Other sales experienced substantial growth, increasing by 148.9% compared to the previous quarter and 389.0% compared to the same period last year. One contributing factor to this growth was the inclusion of Whale Book sales from the Jeonbuk Education Office. Naver’s focus on expanding its cloud services will continue with a strategic interest in Saudi Arabia, starting in the fourth quarter.
Achievements and Future Plans
In October, Naver became the first information technology (IT) company to issue a Japanese samurai bond. Additionally, the company paid dividends of KRW 62.4 billion in cash in the third quarter. Furthermore, Naver decided to cancel 1% of its total issued treasury stocks.
The impressive performance and continuous growth of Naver reflect the company’s commitment to innovation and expansion in various business sectors. With a strong focus on artificial intelligence and continued investment in new technologies, Naver is poised to maintain its position as a leading player in the global internet industry.
《The Elec, specialist media in the fields of semiconductors, displays, batteries, automotive electronics, and ICT parts.
© 2023 THE ELEC. All rights reserved. Unauthorized reproduction and redistribution prohibited.
Sales: KRW 2.4453 trillion, operating profit: KRW 380.2 billion
Commerce, content, and cloud ‘good business’… ‘Expanding’ the whale ecosystem
In the fourth quarter, Saudi Arabia’s targeted and productive AI business begins in earnest.
Naver released its performance of the third quarter of 2023. The growth trend was maintained compared to the same period last year. Search is stagnant, but new business is good. ▲Commerce ▲Content ▲Cloud shows good performance.
Naver announced on the 3rd that its consolidated sales and operating profit for the third quarter were KRW 2.4453 trillion and KRW 380.2 billion, respectively.
Sales increased by 1.6% compared to the previous quarter and 18.9% compared to the same period last year. Operating profit increased by 2.0% compared to the previous quarter and 15.1% compared to the same period last year.
Naver CEO Choi Soo-yeon said, “In the third quarter, we unveiled the productive artificial intelligence (AI) service line and financial roadmap, presenting the future direction of our AI business, and we are setting the a foundation to continue the growth in all areas. .” “Including promoting the model technology project (digital twin) in Saudi Arabia, Naver will accelerate not only its services but also its global challenges by using its accumulated technological capabilities,” he said.
Sales by business were all up compared to the same period last year, although there were differences in degree. ▲Search platform KRW 898.5 billion ▲Commerce KRW 647.4 billion ▲Fintech KRW 340.8 billion ▲Content KRW 434.9 billion ▲Cloud KRW 123.6 billion. Compared to the same period last year, ▲ Search platform increased 0.3%, ▲Commerce 41.3%, ▲Fintech 15.1%, ▲Content 39.5%, and ▲Cloud 30.3%.
There is variation in operating profit by business in the third quarter. Search and commerce platform operating profit earned 493.3 billion. Fintech operating profit is 33.4 billion won. There is a lack of content and cloud. There were operating losses of 62.1 billion won and 87 billion won, respectively.
The search platform business offset the weakness of the online advertising market with platform promotion and place advertising. The number of advertiser places was 130,000 in the third quarter. Search sales were 688.2 billion and display sales were 206.7 billion. Searches fell 0.1% compared to the previous quarter, but rose 3.5% compared to the same period last year. Display fell 4.9% compared to the previous quarter and 9.5% compared to the same period last year.
Trade business sales included ▲ trade advertising 282.4 billion won, ▲ broadcasting and sales 321.1 billion won, and ▲ membership 44 billion won. Trade advertising increased by 0.7% compared to the previous quarter and 5.5% compared to the same period last year. Broadcasting and sales increased by 3.5% compared to the previous quarter and 105.0% compared to the same period last year. Membership is 4.3% higher than the previous quarter and 29.7% higher than the same period last year. In the case of broadcast sales and sales, the share of the cream ▲ brand store ▲ travel ▲ is increasing. As of the third quarter, merchandise transaction volume (GMV) was 11.9 trillion won.
Fintech payment volume (TPV) exceeded 15 trillion won. From the third quarter, 15.2 trillion was won. The amount of the external payment is 6.9 trillion won. It was up 10.8% compared to the previous quarter and 45.8% compared to the same period last year. Offline payment amount is 1.7 trillion won. A partnership with Samsung Pay was beneficial.
Content is driven by webtoons. Sales are ▲Gwê 379.8 billion won ▲Snow 49.5 billion won ▲Another 15.6 billion won. Webtoons expanded by 2.8% compared to the previous quarter and 41.5% compared to the same period last year. The webtoon transaction amount is 479.4 billion won. It is 37.8 billion won higher than the previous quarter. Strengthening the platform, including the success of work incorporating intellectual property (IP) rights and AI recommendations, was effective.
Cloud posted business-to-business (B2B) sales of KRW 110.5 billion and other sales of KRW 13.1 billion. B2B sales are 11.4% higher than the previous quarter and 19.9% higher than the same period last year. Other sales increased by 148.9% compared to the previous quarter and 389.0% compared to the same period last year. There is another expansion in sales as a result of a reflection of Whale Book sales from the Jeonbuk Education Office. Naver will start targeting Saudi Arabia in earnest from the fourth quarter.
Meanwhile, Naver was the first information technology (IT) company to issue a Japanese samurai bond last October. In addition, a total of 62.4 billion earned in cash was paid as dividends in the third quarter. On the 7th, it was decided to cancel the treasury stocks which correspond to 1% of the total stocks issued.
THE ELEC = Reporter Sangho Yoon crow@thelec.kr
《The Elec, specialist media in the fields of semiconductors, displays, batteries, automotive electronics, and ICT parts.
Copyright © THE ELEC, a medium specializing in electronic components Unauthorized reproduction and redistribution prohibited.
#Naver #continues #grow #quarter #Operating #profit #compared #previous #year
