Naver's Strong Growth Drives Doubling of Net Profit in Q4 2023

Naver, the South Korean internet platform giant, achieved an impressive surge in net profit in the fourth quarter of 2023, thanks to the robust performance of its e-commerce and fintech divisions.

Solid Net Profit Growth

The company reported a net profit of 301.80 billion won ($227.0 million) for the quarter, more than double the 131.80 billion won recorded during the same period in the previous year.

Not Meeting Consensus Forecast

Despite the substantial growth, Naver fell short of the FactSet-compiled consensus forecast, which projected a net profit of KRW357.92 billion.

Revenue Increase and Operating Profit Jump

Naver's revenue for the quarter experienced a 12% rise, reaching KRW2.537 trillion. Additionally, the operating profit saw a significant jump of 21% to KRW405.50 billion.

E-commerce and Fintech Leading the Way

The company's e-commerce and fintech businesses demonstrated remarkable growth in the final quarter of 2023, with revenue surging by 36% and 11%, respectively.

Sluggish Advertising Markets Impact Search-Platform Revenue

However, Naver's search-platform business experienced minimal growth, with revenue increasing by only 1.3% for the quarter. This was primarily attributed to sluggish advertising markets within the country.

Impressive Full-Year Performance

For the entire year, Naver achieved record-breaking results. The company's revenue rose by 18% to reach an annual record of KRW9.671 trillion. Furthermore, the operating profit increased by 14% to KRW1.489 trillion, and net profit climbed by an impressive 47% to KRW988.40 billion.

In conclusion, Naver's strong performance in the e-commerce and fintech sectors drove a significant increase in net profit for the fourth quarter of 2023, contributing to impressive full-year results.