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Naver Q1 Net Profit Falls 31.3% on Forex Losses Amid Sales Growth

Naver's first-quarter net profit dropped 31.3% to 291 billion won due to foreign exchange losses on dollar-denominated debt. Operating profit increased 7.2% to 541.8 billion won, while sales grew 16.3% to 3.24 trillion won. The results fell short of market expectations, with the average net profit estimate at 513.7 billion won. CEO Choi Soo-yeon highlighted Naver's integrated platform strengths and plans to pursue global growth in areas like sovereign AI.

Key Points: Naver Q1 Net Profit Drops 31.3% on Forex Losses

  • Net profit fell 31.3% to 291 billion won due to forex losses
  • Operating profit rose 7.2% to 541.8 billion won
  • Sales increased 16.3% to 3.24 trillion won
  • Results missed market expectations of 513.7 billion won net profit
2 min read

Internet major Naver's Q1 net profit falls 31.3 pct on forex losses

Naver's Q1 net profit fell 31.3% to 291 billion won due to forex losses, while operating profit rose 7.2% and sales grew 16.3%.

"The decline was largely attributed to increased translation losses on the company's dollar-denominated debt when converted into the local currency. - Naver spokesperson"

Seoul, April 30

Naver, South Korea's largest online portal operator, said Thursday its first-quarter net profit fell 31.3 per cent from a year earlier, weighed down by foreign exchange losses.

Net profit for the three months that ended in March fell to 291 billion won (US$195.9 million) from 423.7 billion won in the same period last year, the company said in a regulatory filing.

"The decline was largely attributed to increased translation losses on the company's dollar-denominated debt when converted into the local currency," a company spokesperson said.

Operating profit rose 7.2 percent to 541.8 billion won in the first quarter from 505.3 billion won a year ago. Sales also increased 16.3 percent to 3.24 trillion won from 2.78 trillion won over the same period.

The results fell short of market expectations. The average estimate for net profit stood at 513.7 billion won, according to a survey by Yonhap Infomax, the financial data arm of Yonhap News Agency.

Sales from Naver's mainstay platform business, which covers search, advertisement and shopping, rose 14.7 percent to 1.8 trillion won from a year earlier.

Its global business, which encompasses online marketplaces and webtoon platforms, saw its first-quarter sales rise 18.4 percent to 941.6 billion won, while the financial platform's sales expanded 18.9 percent on-year to 459.7 billion won, said the report.

"Naver is a unique platform that integrates search, commerce and payment infrastructure, the core competitive advantages of the AI agent era, into a single ecosystem," said Choi Soo-yeon, Naver's chief executive officer (CEO), adding that the company will identify opportunities in global growth areas, such as sovereign AI, to accelerate overall revenue growth.

- IANS

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Reader Comments

P
Priya S
A 31% profit drop despite rising sales? That's a red flag. Even if it's forex, investors hate surprises. And missing expectations by such a wide margin—market won't be kind. 📉
V
Vikram M
Naver's CEO talking about 'sovereign AI'—that's a big trend globally. India should also focus on building our own AI models instead of relying on foreign ones. Good to see Asian tech firms thinking long-term. 🇮🇳
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James A
Net profit falling by nearly a third is concerning, but the underlying business seems solid. Naver's strength in search and commerce is impressive. I wonder how this compares to Google's performance in South Korea.
K
Kavya N
The translation loss on dollar debt is a good reminder for Indian startups that borrow in foreign currency. We've seen similar issues with companies like Byju's. Currency hedging is crucial, yaar.
M
Michael C
Operating profit up 7% and sales up 16%—that's solid growth. The forex hit is temporary. Long-term investors should look past this quarter. Naver's ecosystem is powerful.
S
Siddharth J
I've used Naver's webtoon platform—it's huge

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