Naver’s third-quarter profit fell 28% on the year, lack of consensus

By Kwanwoo Jun

 

Net income of Naver Corp. in the third quarter fell 28% from a year earlier despite steady revenue growth, held back by sluggish online advertising sales and increased operating costs to develop new business.

Net profit for the quarter ended September was 231.60 billion won ($165.0 million) compared to net profit of KRW 322.70 billion in the same quarter a year earlier, it said on Monday. the South Korean Internet platform giant.

This missed a consensus forecast compiled by FactSet for a net profit of KRW 298.89 billion.

Revenue rose 19% from a year earlier to KRW 2.057 billion, while operating profit fell 5.6% to KRW 330.20 billion.

The company maintained steady revenue growth from its e-commerce, fintech and paid content businesses, but weak sales of its online search platform and display ads weighed on earnings.

Rising labor costs and other operating costs associated with acquiring and expanding businesses also weighed on earnings as the company continued to search for new engines. of growth.

Naver recently acquired US online fashion retailer Poshmark Inc. for over $1 billion to expand its global e-commerce business.

 

Write to Kwanwoo Jun at [email protected]

 

(END) Dow Jones Newswire

November 06, 2022 7:19 p.m. ET (00:19 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.

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