By Kwanwoo Jun
Naver is scheduled to report its third-quarter results Friday. Here is what you need to know:
NET PROFIT FORECAST: The South Korean internet platform group is expected to post a net profit of 288.94 billion won ($214.2 million) for the quarter ended September, up 12% from a year earlier, according to a consensus forecast by FactSet.
REVENUE FORECAST: FactSet’s consensus forecast puts Naver’s third-quarter revenue at KRW2.467 trillion and operating profit at KRW370.22 billion.
WHAT TO WATCH:
–STEADY GROWTH: Investors will be looking to see if Naver could maintain steady earnings growth in the quarter despite challenges from sluggish recovery in advertising markets. Some analysts expect that the company’s control on marketing costs, as well as its solid e-commerce and paid-content businesses, may have helped improve its quarterly earnings.
–AI: Naver’s newly launched artificial-intelligence model, HyperCLOVA X, and its diversified AI-powered business services would likely be of interest to investors. Some analysts say the company’s AI push could be a long-term growth driver. Naver unveiled in October two of its new business-to-business solutions, CLOVA Studio and Neurocloud for HyperCLOVA X.
–SHAREHOLDER RETURN: Also in focus will be the company’s plan to pay 15% to 30% of its free cash flows for dividends and cancel 3% of its treasury shares until 2025. Naver said on Tuesday it plans to cancel 1.64 million shares worth KRW305 billion on Nov. 7 as part of the plan.
Write to Kwanwoo Jun at [email protected]
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