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Naver's First-Quarter Net Profit Above Consensus — Earnings Review

By Kwanwoo Jun

 

Naver Corp. reported first-quarter results on Thursday. Here's what you need to know:

 

NET PROFIT: The South Korean internet group's net profit for the quarter ended March 31 was 15.315 trillion won ($13.80 billion) compared with net profit of KRW134.90 billion in the same quarter a year earlier.

 

REVENUE: Revenue during the quarter rose 30% to KRW1.499 trillion, while operating profit fell 1.0% to KRW288.80 billion.

 

WHAT WE WATCHED:

--BEAT CONSENSUS: Naver attributed its net-profit surge to an earnings recognition on its accounting book following a merger between its messaging-app affiliate Line and Yahoo Japan's parent, Z Holdings. Net profit was way above a FactSet consensus forecast for net profit of KRW254.54 billion.

--ONLINE SHOPPING: Growth remained solid in its e-commerce, online-payment and paid-content segments as pandemic-induced demand for internet-based shopping and other activities continued, the company said.

--COSTS: Increasing labor and business costs, however, weakened Naver's quarterly operating profit.

 

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

 

(END) Dow Jones Newswires

April 28, 2021 22:51 ET (02:51 GMT)

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