NAVER, content and commerce in 3Q salesBut .

NEVER’s sales grew by nearly 20% year-on-year due to the growth of the business divisions such as contents, commerce, and searches in the third quarter of this year, but operating profit grew in 6Q.

Never recorded sales of 2.57 trillion won and operating profit of W330.3bn in 3Q. Sales rose 19.1% YoY and operating profit fell 5.6% over the same period.

The sales of each business division were 896.2 billion won for search platforms, commerce 458.3 billion won, fintech 296.2 billion won, content of 311 billion won, and cloud and other 94.8 billion won. Operating profit growth was influenced by operating profit growth, such as labor costs, infrastructure, and development operations.

3Q content · Showed growth such as commerce, search, and fintech

In the third quarter, Never’s content, commerce, search, and fintech businesses all grew compared to the same period last year.

The content sector’s sales amounted to W311.9bn, up 77.3% YoY and 3.9% Qom. The global webtoon integrated transaction amounted to 18.1% year-on-year and 11.9% Qom, up 457 billion won, and Japanese business users such as Line Network and North Korean fans and profitability indicators also increased.

The commerce division’s sales amounted to W45.3bn, up 19.4% from the same period last year and 4.3% from the last quarter. The display advertisements decreased due to low season and macro environment, but commerce search ad sales increased 13.2% year-on-year. In the third quarter, Never shopping transactions recorded 10.5 trillion won, up 19.1% year-on-year. Smart Store and limited edition Li sell trading platform ‘cream’ trading amount increased by 18.2% year-on-year to 7.1 trillion won. Never plans to raise the cream trading fee to 5% by the end of the year. The 3Q cream transaction amounted to 2.7% compared to the same period last year.

Search platform sales rose 8% year-on-year, down 1% from the previous quarter, to W896.2bn. Despite the low season of traditional season and tightening of the maxillary environment, Never 3Q search advertisements grew by 10% year-on-year.

The fintech division sales posted 22.5% YoY and 0.2% Qom to W296.2bn. Never Pay payment amounted to 27.7% YoY and 3.3% Qom to 12.4 trillion won. Cloud and others recorded 1.5% year-on-year and 9.6% decrease from the previous quarter.


Increased operating costs such as infrastructure and labor costs… Operating profit fell 5.6% compared to the previous year

In the third quarter, operating profit was W330.2bn, down 5.6% YoY and 1.8% Qom.

In the third quarter, operating costs amounted to 1.72 trillion won, up 25.4% year-on-year. Labor costs amounted to W433.5bn, up 17.8% from the same period last year, and the development operation cost increased 24.3% to W521.7bn. Infrastructure costs also increased 19.3% year-on-year to W152.2bn.

However, Never, except for depreciation costs and stock compensation costs affected by stock fluctuations due to infrastructure investments such as data centers (IDC) facilities, increased 7.2% Qom to W463.7bn, with adjusted EBITDA margin 1.4%. It has been improved.

Kim Nam-sun, Chief Financial Officer (CFO), said in a conference call, Operating profit decreased slightly due to the increase in infrastructure and development and operating costs related to the second data center, but the cost control performance began to be seen from this year. The costs of commerce, pay-related marketing, and rewards have improved slightly, and the total labor cost itself maintained the previous quarter.

Meanwhile, Never CEO Choir Soo-yeon said that Luncheon played a pivotal role last month.

CEO Choir said, Data Center, which was established in 2013, is serving as a pivotal role that provides a variety of services stably. I normalized.

In addition, he explained that the impact on financial indicators would be limited in terms of the transaction platform Roche Mark, the largest individual in North America, which spent 2.3 trillion won last month.

Kim said, The acquisition of Postmark has used some $500 million in reserves. The ratio of borrowings will be possible to recover to the current level within two years.