Analysts forecast Naver profit decline, Kakao gain in Q3
Consensus compiled by FnGuide puts Naver revenue at 3.5146 trillion won while Kakao's operating profit is seen rising 21.2%.
Analysts expect Naver to report higher revenue but lower operating profit for the third quarter, while Kakao is forecast to post a slight revenue decline with double-digit operating profit growth, according to a consensus compiled by FnGuide and reported by digitaltoday.co.kr.
The consensus puts Naver's consolidated revenue at 3.5146 trillion won, up 12% year-on-year, with operating profit forecast at 500 billion won, down 12.4%. Kakao's revenue is expected at 2.0493 trillion won, down 1.8%, while operating profit is seen at 252.2 billion won, up 21.2%.
Naver's cost burden is expected to grow on shopping promotions, the rollout of Naver Pay Connect terminals, sports broadcast rights for the World Cup and Asian Games, and higher depreciation from GPU investment.
Kakao unveiled the AI assistant Kanaana Space, callable from any KakaoTalk screen, and the PC-based personal AI agent Kanvas at its if(kakao)26 conference held on the 13th and 14th. Kanaana Space is planned to be offered sequentially to selected users starting in December, with a public launch targeted for March next year.
Naver has been pursuing an AI factory business with Nvidia and Brookfield. A 1 billion dollar paid-in capital increase by Nvidia is scheduled for the 30th and is tied to a precondition for establishing a special purpose vehicle for Brookfield's 9 billion dollar investment.
Kakao has an extraordinary shareholders' meeting scheduled for December 17 to approve a spin-off. The company classified its game segment as discontinued operations starting in the first quarter of this year.
Quick answers
What are Naver's Q3 revenue and operating profit forecasts?
The FnGuide consensus expects revenue of 3.5146 trillion won, up 12% year-on-year, and operating profit of 500 billion won, down 12.4%.
When will Kakao's Kanaana Space be available?
Kakao plans to offer it sequentially to selected users starting in December, with a public launch targeted for March next year.
When is Kakao's extraordinary shareholders' meeting?
It is scheduled for December 17 to approve a spin-off.