Naver First-Quarter Net Profit Fell Sharply on Weak Online Ad Sales
By Kwanwoo Jun
Naver's first-quarter net profit fell 71% from a year earlier, on weak online advertising sales amid an economic slowdown, missing street views.
Net profit for the quarter ended March was 43.70 billion won ($33.2 million) compared with net profit of KRW151.40 billion in the same quarter a year earlier, the South Korean internet platform giant said Monday.
That was well below a FactSet-compiled consensus forecast for a net profit of KRW219.49 billion for the quarter.
Revenue rose 24% from a year earlier to KRW2.280 trillion for the quarter, as operating profit gained 9.5% to KRW330.50 billion.
Naver, however, said its earnings were weighed by sluggish advertising markets, with online display ads declining 13% on year in the quarter.
Losses over foreign exchanges and equity investments also hurt its earnings, it said.
The company said its U.S.-based online fashion reseller affiliate, Poshmark, posted an operating profit for the quarter after its acquisition was completed in January.
Naver said it would release its own generative artificial-intelligence search engine early this summer.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
May 07, 2023 20:25 ET (00:25 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
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