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(LEAD) Naver's Q1 net jumps 54 pct on business platform

All News 08:45 April 23, 2020

(ATTN: CHANGES headline, lead; ADDS more info throughout, photo)
By Kim Han-joo

SEOUL, April 23 (Yonhap) -- South Korea's top internet portal operator Naver Corp. said Thursday its net profit jumped 54 percent in the first quarter from a year earlier largely on the back of a solid platform business amid increased online shopping.

Net profit reached 134.9 billion won (US$109.5 million) in the January-March period, compared with a profit of 88 billion won a year earlier, the company said in a press release.

Operating income reached 221.5 billion won during the cited period, marking an increase of 7.4 percent from the year before. Sales totaled 1.73 trillion won, representing a 14.6 percent increase from a year earlier, Naver said.

This undated photo provided by Naver Corp. shows the company's headquarters. (PHOTO NOT FOR SALE) (Yonhap)

Revenue from its business platform increased 12 percent on-year to 749.7 billion won in the first quarter on the back of increased online shopping as more people refrained from going outside amid the COVID-19 pandemic.

Naver said revenue from its platform business, including messenger Line, surged 17.4 percent on-year to 565 billion won during the same period.

Revenue from its advertisement business was up 1.2 percent on-year to 144 billion won in the first quarter. The number, however, was down 16.2 percent from a quarter earlier due to the COVID-19 outbreak as more companies downsized their ad expenses.

Sales from its IT platform business, which covers Naver Pay and cloud computing services, also jumped 49.4 percent on-year to 148.2 billion won as more people worked at homes during the pandemic.

Content sales advanced 58 percent on-year during the cited period to 55.4 billion won due to the increased revenues from its webtoons and an increase in global users, it said.


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