Naver (035420.KS) achieved record-high earnings last year, driven by artificial intelligence advancements and commerce business growth.
The company reported preliminary consolidated operating profit of 2.2081 trillion won for 2024, up 11.6% from the previous year, according to a regulatory filing Thursday.
Revenue rose 12.1% year-on-year to 12.035 trillion won. Net profit fell 5.8% to 1.8203 trillion won.
Fourth-quarter operating profit increased 12.7% year-on-year to 610.6 billion won. Revenue and net profit for the quarter were 3.1951 trillion won and 164.6 billion won, respectively.
Revenue by business segment for the fourth quarter was: Search Platform at 1.0596 trillion won, Commerce at 1.054 trillion won, Fintech at 453.1 billion won, Content at 456.7 billion won, and Cloud at 171.8 billion won.
Platform advertising grew 6.7% year-on-year, benefiting from improved ad efficiency through AI-powered placement optimization and enhanced personalization services including Feed and Clip. Search Platform revenue declined 0.5% year-on-year but posted 1.8% growth to 1.0596 trillion won when excluding LY (Line Yahoo) settlement effects.
Under its new three-year shareholder return plan for fiscal years 2025-2027, Naver will return 25-35% of its average consolidated free cash flow from the preceding two years through share buybacks and cancellations or cash dividends.
"In 2025, we focused on strengthening competitiveness in core businesses including advertising and commerce by integrating AI with our rich content and data assets, and confirmed our search competitiveness in the AI era through AI Briefing expansion," CEO Choi Soo-yeon said.
"This year, we will continue to create new value and monetization opportunities through Shopping Agent and AI Tab, while pursuing strategic investments centered on content, AI infrastructure, and N-Delivery to secure mid-to-long-term growth drivers and accelerate revenue growth," Choi added.