South Korean tech giant, Naver Corp., has reported an impressive 129 percent increase in net profit for the fourth quarter of 2023. The company attributes its strong performance to the robust growth of its commerce and fintech businesses. Net profit stood at 301.8 billion won (US$226.6 million) for the period ending in December, compared to 131.8 billion won the previous year. Operating profit also rose by 20.5 percent to 405.5 billion won, while sales increased by 11.7 percent to 2.53 trillion won.
Naver’s stellar financial results extended beyond the fourth quarter, with the company’s net income reaching 988.4 billion won for the full year, reflecting a significant 46.8 percent growth compared to the previous year. Annual operating profit rose by 14.1 percent to 1.49 trillion won, and revenue saw a substantial gain of 17.6 percent, reaching 9.67 trillion won.
During the fourth quarter, Naver’s major business divisions delivered strong performances. Sales from its flagship search platform division rose by 1.3 percent to 928.3 billion won, driven by continued high demand for search advertisements. The commerce division experienced remarkable growth, with sales soaring by 35.7 percent to 660.5 billion won. The total value of transactions on its smart store platform increased by 11 percent to 12.4 trillion won during the period. Notably, Naver’s social commerce platforms, Poshmark and Kream, contributed significantly to the brisk sales in the commerce division.
The fintech division also demonstrated growth, with sales increasing by 11.3 percent to 356 billion won, fueled by a 23.9 percent surge in the value of quarterly transactions. The content division witnessed a sales growth of 6.6 percent, amounting to 466.3 billion won, thanks to the success of its webtoon business and robust sales of its mobile camera application, Snow. Furthermore, transactions on the global webtoon platform grew by 9.3 percent to 444 billion won.
Naver’s cloud division exhibited a sales growth of 13.3 percent, reaching 125.9 billion won. CEO Choi Soo-yeon acknowledged the company’s focus on increasing profitability in 2023 and highlighted Naver’s commitment to strengthening its competitiveness in core businesses through the application of artificial intelligence and data technologies.
Naver’s exceptional financial performance reflects its success in various sectors, including commerce, fintech, content, and cloud services. The company’s strategic initiatives, coupled with its innovative approach, have positioned it as a South Korean tech giant to watch. As Naver continues to invest in AI and data technologies, it is expected to maintain its strong growth trajectory and further solidify its position in the global tech industry.
