Balanced growth in new growth engine commerce/fintech/contents/cloud… Consolidated operating revenue increased by 6.6% QoQ
Consolidated operating profit increased by 1.8% YoY and decreased by 5.3% QoQ
“Pedestal for long-term growth through CJ partnership and line management integration prepared… to further develop global competitiveness”
Naver (CEO Han Sung-suk, www.navercorp.com) announced that the operating revenue was 1.36 trillion won, the operating profit was 291.7 billion won, and the net income was 235.3 billion won for 3Q 2020.
The 3Q consolidated operating revenue recorded 1.36 trillion won, up 24.2% YoY from strong search platform and commerce businesses, and as new businesses like fintech, contents, and cloud experienced accelerated growth. The consolidated operating profit was 291.7 billion won, up 1.8% YOY.
The operating revenue by business divisions is ▲ 710.1 billion won for search platform ▲ 285.4 billion won for commerce ▲ 174 billion won for fintech ▲ 115 billion won for contents, and ▲ 76.3 billion won for cloud.
△ Despite concerns over the re-spreading of COVID-19, the search platform recorded 710.1 billion, an increase of 8.2% YoY and 4.7% QoQ, thanks to efforts to expand performance-type advertising and improve advertising efficiency. In detail, it recorded 168.1 billion won in display and 542 billion won in search.
△Commerce recorded 285.4 billion won, up 40.9% YoY and 11.4% QoQ from the continuous growth of online shopping. Naver plans to reinforce the shopping ecosystem through Plus Membership, Shopping Live, and strengthening of logistics partnerships with CJ Logistics.
△Fintech recorded 174 billion, an increase of 67.6% YoY and 5.7% QoQ from the increase of Naver Pay transactions. Naver plans to run fintech for SMEs in full force by launching the offline point QR payments and Smart Store seller loans in 4Q this year.
△Contents recorded 115 billion won, up 31.8% YoY and 1.8% QoQ from increased global transactions on webtoons. Naver Z, which has attracted investment from Big Hit Entertainment and YG, also plans to expand its global entertainment IP business.
△Cloud recorded 76.3 billion won, up 66.2% YoY and 19.1% QoQ thanks to the increase in demand of cloud environment due to non-face-to-face environment and balanced growth of other services. Naver announced that it will commercialize all B2B technologies and services on a cloud basis in the future and stand out by introducing vertical specialized products.
Naver’s CEO Han Sung-suk said, “Naver has achieved good results through the balanced growth of its new growth engine, which are commerce, fintech, content, and cloud business. We will further develop our global competitiveness through synergy with various partners as we have prepared a long-term pedestal for growth by the partnership with CJ and management integration with Line.”
Naver changed its sales division from the third quarter of 2020 to recognize profits and losses from the discontinued business following the approval of the management integrated anti-monopoly review for Line-Z Holdings and reflect Naver’s mid-to-long-term business direction. Naver will exceed 2 trillion in quarterly sales for the first time in history if the sales from Line is excluded due to the change in sales division is added. (※2.59 trillion won)
Naver is based in Pangyo. Pangyo Technovalley is the Asia Tech Hub where more than 1,200 companies in IT, CT, and BT sectors with innovative products and technologies are gathered. Located just south of the Seoul metropolitan area, easy transportation access and infrastructure provides the best environment for Korean companies to conduct businesses.
Various high-tech companies are located here, with more than 64 thousand full-time workers with a vast majority in their 20s and 30s. By industries, companies in the high-tech industry are made up of IT companies, content technology companies, biotechnology companies, and nanotechnology companies.
With the support from innovative companies with global capabilities like Kakao, NHN Entertainment, AhnLab, Krafton, NCSOFT, Nexon, and Hancom at hand, companies in Pangyo Technovalley made over 100 trillion in revenue this year. A 20% increase from last year, it is expected to become one of the best IT clusters in Korea in near future, along with advanced technology research institutes like Advanced Institute of Convergence Technology, KAIST, ETRI, and KETI working together to develop the relevant technologies further.