Naver, a South Korean internet conglomerate posted its largest operating profit in Q1 of this year, the fourth consecutive quarter of growth since Q1 of 2023, but sales fell for the first time in eight quarters due to the off-season.
Naver announced in its regulatory filing on May. 3. its consolidated financial statements for Q1 2024 of this year recorded 2.526 trillion won (about $1.854 billion) and an operating profit of 439.3 billion won (about $323.5 million), up 10.8% and 32.9%, respectively, from the same period last year. Compared to the previous quarter, sales decreased by 0.4% and operating profit increased by 8.3%. The revenue of the leading internet service provider recorded the largest ever in the first quarter alone. The net income for Q1 was 555.8 billion won (about $407.66 million), up 1173.2% and 86.2% from the same period last year and the previous quarter, respectively.
In addition, its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q1 this year increased 19% year-over-year and 0.2% quarter-over-quarter to 581 billion won (about $426.11 million), driven by improved profitability in the content segment and expanded operating income at its affiliate social commerce marketplace Poshmark.
The company reported that revenue in the first quarter increased compared to the same period last year, primarily due to growth in key business segments such as search platforms and commerce. However, revenue decreased compared to the previous quarter due to the off-season. Meanwhile, its operating income increased year-on-year due to a temporary decrease in stock compensation expense caused by stock price volatility.
Naver’s Q1 2024 performance exceeded analysts’ expectations. According to FnGuide, a financial information provider, stock market analysts expected the portal to post revenue of 2.49 trillion won, operating income of 395.5 billion won, and net income of 291.5 billion won in Q1 2024. It turned out that Naver’s recently posted sales and operating profit were higher than their forecasts by 1.22% and 12.78% each. The net profit was 90.6% higher than forecasted.
