Naver has climbed to third place in the KOSPI market in terms of market capitalization as it share price hit a 52-week high on the back of an improvement in operating profits and an expansion of its financial business.
Naver closed at 164,000 won on Oct. 31, up 6.15 percent (9,500 won) from the previous trading day. Its stock price once touched 167,000 won, a 52-week high, during trading. In particular, its market capitalization surged to 27,029.4 billion won, the third highest among KOSPI-listed firms.
Naver’s jump in the market cap rankings was powered by a recovery in earnings and high expectations for new businesses. Naver posted 202.1 billion won in operating profits, down 8.9 percent from the same period of last year. Yet the figure represented a 57.5 percent jump from the preceding quarter. After hitting 312.1 billion won in the third quarter of 2017, its operating profit continued to decline before rebounding in the third quarter.
The company’s sales rose 19.1 percent to 1,654.8 trillion won.
Naver's operating profit has declined despite an increase in sales as marketing and investment expenses swelled. However, the growth of Naver Pay and Line Pay and investment in platforms improved its profitability.