[아이뉴스24 윤지혜 기자] Naver and Kakao, non-face-to-face bosses, are expected to record record-breaking performance last year. In particular, expectations are high for Naver’s operating profit recapture and Kakao’s first 4 trillion won in annual sales.
According to F&Guide, a financial information company on the 26th, last year’s Naver sales are expected to decline by 15.62% from the same period of the previous year to 5,563 trillion won. The Japanese subsidiary Line was excluded from Naver’s consolidated financial statements from 3Q14 due to management integration with Z Holdings, the operator of’Yahoo Japan’, and sales declined.
However, last year’s operating profit is expected to increase by 65.66% to 1.17 trillion won. Naver’s operating profit exceeded 1 trillion won in three years since 2017.
In 4Q, sales are expected to decline 37.65% to KRW 1,4693 trillion and operating profit to increase by 251.6% to KRW 312.9 billion.
4Q is a traditional peak season for the retail industry, and Naver shopping and fintech transactions are expected to increase significantly due to the strengthening of social distancing at the end of last year. Meritz Securities predicted that Naver Shopping sales would increase by 41% year-on-year to KRW 388.6 billion, and Naver Pay’s transaction volume will also increase by 50% to KRW 7.5 trillion.
Operating profit may stagnate due to increased marketing costs. In fact, Naver’s operating margin remained at 24-25% in the first and second quarters, but declined to 21% in the third quarter. This is the effect of executing large-scale marketing expenses on’Line Manga’ as competition in the Japanese webtoon market intensifies.
Lee Ji-eun, a researcher at Daishin Securities, said, “Naver’s operating profit has been stagnating for eight consecutive quarters from the first quarter of 2019 to the fourth quarter of 2020. The increase in point payments due to the increase in Naver Pay transaction value and the increase in Naver Plus membership, “There are many factors that increase costs, such as global brand marketing and line network marketing expenses in Japan.”
◆Kakao opens the era of 4 trillion annual sales… Biz Board’Storm Growth’
Kakao’s sales are expected to increase by 34.53% year-on-year to KRW 4.13 trillion and operating profit to increase by 118.07% to KRW 455 billion. Net loss of KRW 341.9 billion in 2019 is also expected to turn to the black this year. This is the first time that Kakao’s annual sales have risen to 4 trillion won.
Quarterly sales of 1 trillion and operating profit of 100 billion are expected to continue in 4Q. In 4Q, sales are expected to increase by 42.58% to KRW 1.2 trillion and operating profit to increase by 80.33% to KRW 144.3 billion.
Kakao’s performance is also driven by the performance advertisement,’Kakao Biz Board’. Kakao, which already achieved the goal of 10,000 advertisers in the third quarter, surpassed 1 billion won in daily average sales of Biz Board in December. The average daily sales in the same month of the previous year was 500 million won, which means that it has doubled in one year. Some predict that the average daily sales at the end of this year will reach 2 billion won.
Kakao is also rapidly evolving into an e-commerce business.
Daishin Securities predicted that the transaction value of KakaoTalk futures would increase by 44% compared to the same period last year due to social distancing. KakaoTalk Gifts has expanded its product portfolio to luxury living and overseas stock vouchers, and expanded its scope by introducing a’gift code’ service that allows you to send and receive gifts even if you are not KakaoTalk friends.
Kakao’s new industry is also on the rise. Lee Moon-jong, a researcher at Shinhan Financial Investment, said, “As for Kakao Mobility, affiliate taxis such as the launch of’Kakao T Blue’ in Daegu are on the rise, and new business sales will increase 13% QoQ due to the increase in Kakao Pay payments and financial transactions. The webtoon business will increase by about 10%.”
Meanwhile, Naver will announce its fourth quarter results on the 28th and Kakao on the 9th of next month.
Reporter Yoon Ji-hye [email protected]