Naver, the South Korean internet platform group, has announced a significant increase in net profit for the third quarter of this year. Led by the strong performance of its e-commerce, paid-content, and cloud-computing businesses, the company recorded a net profit of 356.20 billion Korean won ($266.9 million) for the quarter ended September. This represents a remarkable 54% rise from the same period last year.
The Q3 net profit surpassed a FactSet-compiled consensus forecast, which estimated the figure to be KRW288.94 billion. Additionally, Naver reported a year-on-year revenue growth of 19%, reaching KRW2.445 trillion, while operating profit increased by 15% to KRW380.20 billion.
The outstanding quarterly revenue growth can be attributed to the impressive performance of Naver's e-commerce, paid-content, and cloud-computing units. These segments experienced significant growth rates ranging from 30% to 41% compared to the same period last year.
However, the company did note a slight decline in display advertisements, which decreased by 9.5% in Q3 compared to the previous year. This downturn can be attributed to the overall weakness observed in the online advertising market. On the other hand, search-platform advertisements saw a modest increase of 3.5%.
Naver's strong Q3 results demonstrate the company's resilience and ability to adapt to changing market conditions. With its diverse portfolio of businesses driving impressive revenue growth, Naver continues to solidify its position as a prominent player in the South Korean internet industry.