"Naver Joins the '10 Trillion Club' for the First Time, Driven by Search Ads and Commerce, Pushed Forward by Fintech and Cloud."
Naver has become the first domestic internet platform to join the "10 trillion won annual revenue club." The strong performance of its key revenue sources, including search ads and its e-commerce business, played a significant role. According to industry sources on the 9th, Naver recently announced that its annual consolidated revenue for last year reached 10.7377 trillion won, marking an 11.0% increase compared to the previous year. Its annual operating profit rose by 32.9% to 1.9793 trillion won, and its annual EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by 24.9% to 2.6644 trillion won. In the fourth quarter of last year, Naver's consolidated revenue grew by 13.7% year-on-year, reaching 2.8856 trillion won, while operating profit for the same period rose by 33.7% year-on-year to 542 billion won. Naver's performance last year is interpreted as being driven by the growth of its Search Platform (search advertising) and Commerce sectors, while its Fintech and Content sectors provided additional support. The revenue by sector is as follows: ▲Search Platform: 3.9462 trillion won ▲Commerce: 2.923 trillion won ▲Fintech (Finance + Technology): 1.5084 trillion won ▲Content: 1.7964 trillion won ▲Cloud: 563.7 billion won The Search Platform sector saw a significant increase in advertising revenue, driven by targeted ads and the introduction of the homepage feed on the portal screen. This led to a 9.9% year-on-year growth in annual revenue. In the fourth quarter, the sector's revenue grew by 14.7% compared to the previous year. In the Commerce sector, Naver achieved a remarkable 14.8% year-on-year increase in annual revenue, even as most e-commerce platforms struggled. Last year, Naver launched "Naver Plus Store" in its commerce division and strengthened its partnership between Naver Plus Membership and its e-commerce services. Additionally, the company successfully enhanced the efficiency of its commerce advertising, maximizing profitability. Launched in October of last year, the Naver Plus Store, which emphasizes ultra-personalization, uses artificial intelligence (AI) to analyze individual preferences and interests, recommending products, benefits, promotions, and shopping-related content. The full profitability of this service is expected to be confirmed in the first and second quarters of this year. In the Fintech sector, Naver Pay grew in line with the expansion of Smart Store, and external payment volume also increased, leading to a 11.3% year-on-year growth in annual revenue, with a 12.6% increase in revenue for the fourth quarter. Despite the prolonged economic downturn, the fourth-quarter payment volume reached 19.3 trillion won, an 18.3% increase compared to the same period last year. In the Content sector, the exclusion of Naver Z from consolidated subsidiaries, combined with the growth in paid subscribers for a camera application linked to AI webtoon content, led to a 3.7% year-on-year increase in annual revenue. The Cloud sector recorded the highest growth. The increase in paid IDs for NeuroCloud and Lineworks, along with strong sales from the digital twin project in Saudi Arabia, resulted in a 26.1% year-on-year growth in annual revenue, with a 41.1% increase in fourth-quarter revenue. Naver aims to generate synergy across all its business areas in 2025, focusing on the organic integration of search advertising and commerce. Naver plans to maximize the efficiency of its search advertising business through AI engines and expand its presence on external media. In addition, in the commerce sector, Naver intends to launch the personalized shopping service "Naver Plus Store" as a separate app in the first half of the year to enhance the lock-in effect among users of its commerce platform. Choi Soo-yeon, CEO of Naver, stated, "This year will be a crucial period for implementing the On-service AI strategy across all of Naver's services. By enhancing the platform with AI technology, we will create new value and business opportunities, ultimately strengthening Naver's unique competitive advantage." He added, "In the commerce sector, through the launch of the new Naver Plus Store app in the first half of the year, we will expand the search-based shopping experience into a more personalized, exploration-based experience, offering a more intuitive and powerful shopping experience." Meanwhile, on the 7th, Naver proposed an agenda for its upcoming shareholder meeting scheduled for February 26, which includes appointing Naver's founder, Lee Hae-jin, Global Investment Officer (GIO), as an internal director. Lee Hae-jin had resigned from the position of Chairman of Naver's board of directors in 2017. ChatGPT를 사용하여 번역한 기사입니다.
