Naver Corp Reports 48.8% Increase in Q4 Net Income Driven by Strong Sales
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Synopsis
On February 7, Naver Corp revealed a remarkable 48.8% increase in its Q4 net profit, totaling 444.1 billion won, driven by strong performance in its search and e-commerce sectors. Annual sales for 2024 reached an unprecedented 10.73 trillion won, marking a historic milestone for platform companies in South Korea.
Key Takeaways
- Q4 net profit rose by 48.8% to 444.1 billion won.
- Sales increased 13.7% to 2.88 trillion won.
- Commerce unit sales grew by 17.4%.
- Annual sales surpassed 10 trillion won for the first time.
- Plans to hold a shareholder meeting on March 26.
Seoul, Feb 7 (NationPress) Naver Corp, the foremost internet portal provider in South Korea, announced on Friday that its net profit for the fourth quarter surged nearly 50 percent compared to the previous year, fueled by strong sales from its search and e-commerce sectors.
The net profit for the three-month period ending in December reached 444.1 billion won ($306.6 million), reflecting a remarkable increase of 48.8 percent from 298.4 billion won a year prior, as disclosed in a regulatory filing by the company.
Operating profit for the quarter also saw an impressive rise of 33.7 percent year-on-year, amounting to 542 billion won. Sales grew by 13.7 percent, totaling 2.88 trillion won, as reported by the Yonhap news agency.
The financial results surpassed market predictions, with analysts estimating an average net profit of 415.6 billion won, according to a survey conducted by Yonhap Infomax, the financial data arm of Yonhap News Agency.
Naver attributed its robust performance to enhanced sales across its business segments.
The search platform unit, a core segment, experienced a sales increase of 14.7 percent year-on-year, reaching 1.06 trillion won, driven by initiatives to bolster its platform’s competitiveness.
Sales in the commerce sector rose by 17.4 percent year-on-year to 775.1 billion won, while revenue from the financial technology division improved by 12.6 percent to 400.9 billion won.
The content segment recorded a slight revenue increase of 0.2 percent to 467.3 billion won, whereas the cloud business saw a significant jump of 41.1 percent, reaching 177.6 billion won.
For the entirety of 2024, Naver's net income soared by 89 percent year-on-year to 1.86 trillion won, while operating profit surged 32.9 percent to 1.97 trillion won.
Annual sales rose by 11 percent to 10.73 trillion won in 2024.
This marks a historic milestone as it is the first instance of a platform company in South Korea achieving over 10 trillion won in annual sales.
In addition, Naver announced its intention to convene a general shareholders meeting on March 26 to deliberate on a proposal to appoint its founder, Lee Hae-jin, as chairman of the board.
If approved, Lee will return to this role seven years after stepping down in 2017 to concentrate on the company’s global expansion. He is anticipated to spearhead the development of the company’s AI technology, as Naver aims to launch AI services based on its generative AI model, HyperClova X, introduced in 2023.
