Naver's Q1 Net Profit Falls 31.3% on Foreign Exchange Losses
S. Korean portal operator reports operating profit, sales growth but misses market expectations
Hızlı Bakış
- Naver Corp., South Korea's largest online portal operator, reported its Q1 net profit fell 31.3% year-on-year to 291 billion won due to foreign exchange losses on dollar-denominated debt.
- Despite the profit decline, operating profit rose 7.2% to 541.8 billion won and sales increased 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.
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Neden Önemli?
Naver is South Korea's dominant online portal operator, competing primarily with Kakao. The company has been expanding internationally and investing in various business segments including cloud services and AI.
SEOUL, April 30 (Yonhap) -- Naver Corp., South Korea's largest online portal operator, said Thursday its first-quarter net profit fell 31.3 percent 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.
Açık Sorular
- How will Naver mitigate foreign exchange risk in future quarters?
- Will the strong sales growth continue in Q2?
- How will the market react to the earnings miss?
