NAVER Records Sales of KRW 2.27 Trillion and Operating Profits of KRW 336.5 Billion in the Fourth Quarter of 2022
NAVER Records Sales of KRW 2.27 Trillion and Operating Profits of KRW 336.5 Billion in the Fourth Quarter of 2022
NAVER Records Sales of KRW 2.27 Trillion and Operating Profits of KRW 336.5 Billion in the Fourth Quarter of 2022
-With continued growth in core business segments, NAVER’s quarterly sales increased by 17.8% YoY and 10.4% QoQ
-Annual sales increased by 20.6% YoY to KRW 8.22 trillion
February 3, 2023
The NAVER Corporation (CEO Choi Soo-yeon, www.navercorp.com) announced its sales (operating revenue), operating profit, and adjusted EBITDA recorded KRW 2.27 trillion, 336.5 billion, and 486.6 billion, respectively, in the fourth quarter of 2022.
NAVER’s quarterly consolidated operating revenue increased 17.8% YoY and 10.4% QoQ to KRW 2.27 trillion. Quarterly consolidated operating profit fell by 4.2% YoY but saw an increase of 1.9% QoQ to KRW 336.5 billion. The adjusted EBITDA recorded over KRW 486.6 billion, an increase of 0.6% YoY and 4.9% QoQ.
Annual revenue for 2022 saw a 20.6% increase to KRW 8.22 trillion compared to the previous year. Adjusted EBITDA decreased by 5.8% to KRW 1.80 trillion. Yearly net profit dropped to KRW 664.0 billion, a 96% decrease, due to the merger between LINE Corporation and Z Holdings Corporation in the first quarter of 2021 and the resulting non-cash accounting gains of KRW 1.5 trillion.
By business segment, NAVER’s operating revenue in Q4 was KRW 916.4 billion from Search Platform, with KRW 486.8 billion from Commerce, KRW 319.9 billion from Fintech, KRW 437.5 billion from content, and KRW 111.1 billion from Cloud.
Despite the impact of monetary policy tightening, quarterly Search Platform revenue was recorded at KRW 916.4 billion, an increase of 2.3% YoY and 2.3% QoQ. Yearly revenue was KRW 568.0 billion, which was up by 7.9%. NAVER plans to increase revenue by developing search and display products this year.
Commerce revenue for the fourth quarter increased by 18.3% YoY and 6.2% QoQ to KRW 486.8 billion, owing to the robust growth in vertical services such as Brandstore, Travel, and KREAM, as well as year-end peak season sales. For the year 2022, Commerce revenue jumped by 21.0% to KRW 1.80 trillion. The quarterly gross merchandise value grew by 13.7% to KRW 11.2 trillion.
Fintech revenue recorded KRW 319.9 billion in the fourth quarter, an increase of 8.4% YoY and 8.0% QoQ, driven by the addition of new affiliated stores and an increase in payments related to bookings. The reported annual revenue growth sits at KRW 1.19 trillion, an increase of 21.2%. The total payment value for NAVER Pay hit KRW 13.2 trillion, increasing by over 21.0% YoY and 5.8% QoQ.
Quarterly content revenue spiked by 100.1% YoY and 40.3% QoQ to reach KRW 437.5 billion. This can be attributed to robust global growth, characterized by a 25% increase in integrated paid users in Japan. For 2022, content revenue posted a 91.3% increase to KRW 1.26 trillion.
Cloud and other services recorded KRW 111.1 billion in the fourth quarter, increasing by 3.9% YoY and 17.1% QoQ. Annual revenue increased by 5.3% to a total of KRW 402.9 billion. NAVER plans to integrate artificial intelligence (AI) and business-to-business (B2B) organizations into NAVER Cloud, securing large-scale AI leadership to expand the market in the enterprise and finance sectors.
“2022 was a year to reinforce NAVER for stronger growth and investment as a global player,” said NAVER CEO Choi Soo-yeon. “Our goal is to maintain this momentum by securing the stable growth of existing businesses, expanding into new markets, and continuing to put together efforts to become users’ most preferred platform.”
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[Table] 4Q 2022 NAVER Earnings
