Naver fails to meet market expectations
Choi Soo-yeon, CEO of Naver / Courtesy of NaverOperating profit down 14% to 302 billion won in 1st quarterBy Baek Byung-yeulNaver's first-quarter earnings fell short of market expectations as its profitability declined, due to soaring labor costs amid slowing e-commerce growth.The internet company said Thursday that it logged 1.84 trillion won ($1.48 billion) in sales and an operating profit of 301.8 billion won in the first quarter, up 23.1 percent and 4.5 percent, respectively, from the same period of 2021. But the figures are still 1.6 percent and 11.6 percent below the market forecasts, respectively.Its top executives attributed the lower-than-expected performance mainly to increased labor costs, adding that the company will offset the worsened profitability by controlling the increase in the number of employees to pre-pandemic levels.“This year, we will focus on streamlining costs such as labor costs. We expect the company's profitability to improve soon,” CEO Choi Soo-yeon told investors during a conference call.Naver Chief Financial Officer Kim Nam-sun attributed t
