Strong growth in e-commerce and core businesses drives impressive results
- Naver’s first-quarter net profit jumped nearly 13-fold from a year earlier
- Net profit for the quarter was 555.80 billion Korean won ($406.3 million)
- Revenue during the quarter rose 11% on year to KRW2.526 trillion
- Operating profit gained 33% on year to KRW439.30 billion
- Naver beat street views and a FactSet-compiled consensus forecast
- Intensified competition from foreign e-commerce rivals
- Revenue grew across all major businesses, led by e-commerce and search-platform
- E-commerce revenue grew 16% from a year earlier
- Sales from search-platform advertising rose 6.2% on year
Naver, the South Korean internet platform company, reported a nearly 13-fold increase in net profit for the first quarter of the year. The company’s net profit reached 555.80 billion Korean won ($406.3 million), surpassing expectations and beating a FactSet-compiled consensus forecast. Revenue also showed strong growth, rising 11% to KRW2.526 trillion, while operating profit increased by 33% to KRW439.30 billion. Naver’s impressive performance comes amid intensified competition from foreign e-commerce rivals, particularly Chinese platforms like AliExpress and Temu, which are expanding rapidly in South Korea. The company’s flagship e-commerce and search-platform businesses were the main drivers of revenue growth, with e-commerce revenue increasing by 16% and sales from search-platform advertising rising by 6.2% compared to the previous year.
Factuality Level: 8
Factuality Justification: The article provides specific details about Naver’s first-quarter financial performance, including net profit, revenue, and operating profit. It also mentions the competition Naver is facing from foreign e-commerce rivals. The information is clear, relevant, and based on factual data without any apparent bias or misleading information.
Noise Level: 3
Noise Justification: The article provides relevant information about Naver’s first-quarter performance, including net profit, revenue, and operating profit. It also mentions the competition Naver is facing from foreign e-commerce rivals. The article stays on topic and supports its claims with data and examples. However, it lacks in-depth analysis, accountability, and actionable insights, which prevents it from receiving a higher rating.
Financial Relevance: Yes
Financial Markets Impacted: Naver’s strong financial performance may impact the stock market and investor sentiment towards the company.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses Naver’s first-quarter net profit and revenue growth, indicating the financial relevance of the news. However, there is no mention of any extreme events or their impact.
Public Companies: Naver (035420.SE)
Key People: Kwanwoo Jun (Author)
Reported publicly:
www.marketwatch.com 
