Naver Corp.’s annual revenue topped 6 trillion won ($5 billion) for the first time last year with the final quarter’s earnings coming at quarterly record highs thanks to growth across the board from search engine and e-commerce businesses to metaverse platform and web comics service.

The South Korean internet giant reported Thursday that its operating income is estimated at 351.2 billion won on a consolidated basis for the fourth quarter ended December 31, 2021. The figure, the quarterly best, is up 0.4 percent from the third quarter and 8.5 percent from the same period a year earlier.

Fourth-quarter revenue came to 1.9 trillion won, also a record high for a quarter, after gaining 11.6 percent on quarter and 27.4 percent on year.

For full year, Naver posted an operating income of 1.3 trillion won over a revenue of 6.8 trillion won. They are up 9.1 percent and 28.5 percent, respectively, from a year earlier. It was the first time for its annual revenue to top 6 trillion won.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 22.2 percent on year to 1.9 trillion won.

Despite the record earnings, its shares fell 3.19 percent to close Thursday at 303,000 won in Seoul, largely in line with the country’s benchmark stock index Kospi that were extending the losing streak after U.S. Federal Reserve’s signal of rate hikes in March.

Naver’s stellar performance was driven by superb performance across the board in the fourth quarter.

Its pillar Search Platform business delivered 886.9 billion won in revenue, up 7.5 percent on quarter and 15.2 percent on year. Advertising revenue from the search engine jumped 26.1 percent on year.

Commerce business generated 405.2 billion won in revenue, up 6.6 percent on quarter and 27.9 percent on year, driven by the robust growth of livestreaming shopping shows and Smartstore platform. Shopping LIVE’s gross merchandise value (GMV), indicating the total value of merchandise sold through the platform, jumped 4.7 times versus a year earlier. New sellers at Smartstore, its platform for individual online store operation, averaged at 280,000 per month, well above the pre-pandemic level.

Fintech business, which includes mobile payment and other digital financial services, contributed 296.2 billion won in revenue, up 22.1 percent on quarter and 46.8 percent on year. Naver Pay’s total payment value recorded 10.9 trillion won, propelled by global partner expansion.

Content business saw revenue jump 26.7 percent on quarter and 67.9 percent on year to reach 233.3 billion won. Its GMV topped 1 trillion won on robust growth of metaverse platform Zepeto and original content properties. Its webtoon’s monthly active user currently stands at 170 million to rank as the world’s largest web cartoons platform, while Zepeto boasts 260 million subscribed users and more than 2 million creators, said Naver CEO Han Seong-sook at the earnings conference call.

Cloud business posted 107.2 billion won in revenue, up 11.4 percent on quarter and 25.2 percent on year, as new orders from major clients continued. The company plans to start the commercial service of its artificial intelligence technology for corporate clients this year, according to Han.

Upon releasing the earnings report, Naver also unveiled its plan for boosting shareholder value.

The company will make dividend payout of 501 won per common share, totaling at 74.8 billion won. It will also buy back 87.3 billion won worth company shares and retire them this year.

By Hwang Soon-min and Cho Jeehyun

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]