Naver Q4 profit surges on rising ad prices - Mobile World Live

Naver Q4 profit surges on rising ad prices

03 FEB 2020

Naver, the largest internet portal in South Korea and maker of messaging app Line, recorded solid profit and revenue growth in the final quarter of 2019, with double-digit gains in its advertising and IT platform businesses.

Net profit jumped 58.2 per cent year-on-year to KRW196 billion ($164 million), with operating revenue increasing 17.9 per cent to KRW1.79 trillion.

Ad revenue rose 10.7 per cent earlier to KRW172 billion, which Naver attributed to the introduction of new mobile products and higher prices. The IT platform business, which includes Naver Pay and cloud services, increased revenue 28.9 per cent to KRW136 billion.

Operating income fell 18.7 per cent KRW173 billion due to one-off expenses including year-end bonuses and share based compensation adjustments reflecting a share price rise and increases in costs at Line.

For the full year, net profit dropped 36.8 per cent to KRW397 billion, on revenue of KRW6.59 trillion, up 18 per cent year-on-year.

In November 2019, Naver agreed to merge Line with SoftBank’s subsidiary Z Holdings (formerly Yahoo Japan), a deal tipped to create a company worth $30 billion.

The deal is expected to be completed by October.



Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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