As a global company, Naver's 2017
Naver has surpassed KRW 1 trillion in sales for the first time since its founding in 1999. This is the result of the expansion of overseas business such as mobile messenger line and the growth of domestic and overseas ad sales based on mobile platform. The industry expects Naver to achieve KRW4 trillion in sales for the first time ever. "In 2016, we will concentrate on strengthening our competitiveness in the global market through line, webtoon, and V apps," said Kim Sang-hun, CEO of Naver in January.
Line, planting Naver seeds in Asia
Line, headquartered in Tokyo, Japan, announced its third-quarter results for sales of approximately 391 billion won, operating profit of approximately 53.6 billion won, and net income of approximately 30.6 billion won, a subsidiary of Naver. The line that hit the 5th anniversary of the launch was a mobile messenger that received great attention in Japan when it was contacted even when the telephone was disconnected at the time of 2011 East Japan great earthquake disaster. In Japan, which does not prefer foreign products or services, Line has achieved exceptional success with its rapid market preemption and thorough localization. Based on its achievements in Japan, the line expanded its services to the Southeast Asian market, which is closely related to Japan politically and economically. It has also emerged as a national messenger, with its headquarters in Japan, Thailand, Taiwan and Indonesia.
Monthly users (MAU) of the line in the last 3 quarters were ▲ 64 million in Japan ▲, 88 million in Taiwan, Thailand and Indonesia, up 18% from the same period last year. In Thailand, 33 million people, half of the population, are using the line, and the line users account for more than 80%. In Taiwan, 17 million people, or 74 percent of the nation's people, have been using the line. Last February, the rescue took place through the line at the earthquake site. In the third quarter of the line plus other regions, there are 220 million MAUs worldwide.
The line, which debuted spectacularly in New York and Tokyo on July 15, jumped 26 percent in the New York Stock Exchange and gained 48 percent in the Tokyo Stock Exchange and gained about 1.5 trillion won in funding. This is the largest scale of information technology (IT) companies that have been listed this year, and it is worthy of not only Naver but also the Korean IT industry. The company plans to expand into overseas markets such as the United States and Europe in order to capture both raising races and increase profitability after subscription.
Snow rejected Facebook's takeover bid
Snow, expected as the second line, is also cruising. Snow is a SNS service based on photos and videos, which was created by Naver subsidiary Camp Mobile and spun off into an independent company last August. After being introduced to the New York Times in July and nicknamed "Snapshots in Asia," Snow is leading a new messaging trend with the ability to add animated or animated characters and other effects to photos and videos. In recent years, Snow's worldwide users (MAUs) are 41 million, accounting for 70% of overseas users.
On March 31 (local time), TechCrunch, an IT specialist in the US, reported that Facebook had not succeeded in pursuing the acquisition of Snow. Facebook offered Snap Chat for the acquisition three years ago. However, CEO Evan Spigel Snapchat rejected the $ 3 billion acquisition price at that time, and the industry criticized the decision as a mistake, but Snapchat eventually won the $ 25 billion (28.5 trillion won) It has grown into a giant enterprise. It is still unclear whether Snow will achieve remarkable growth like Snap Chat. However, considering the fact that Facebook is aiming for Snow as well as the growth process to date, it seems that the possibility is open enough.
According to the industry on November 22nd, Snow is setting up overseas subsidiary "Snow China" in Hong Kong and spurring overseas marketing. Naver, which refused to take over Facebook, is concentrating its efforts on globalizing Snow based on the confidence that the US and Japan have simultaneously listed their lines. In fact, last October line is investing $ 45 million (51.3 billion won) in snow, strengthening the link between line and snow. Like Facebook and Instagram, we plan to foster line and snow in synergy. Especially, it is expected that the line will help expand the overseas market as it has difficulties in acquiring users outside of major Asian markets such as Japan, Thailand and Taiwan.
V-apps that zoom in on online
Naver's video platform V app is also showing rapid growth. The V-app, which launched formal service last September, is mainly used as a personal broadcasting platform for entertainers. Popular idols and other channels can be used as a window for direct communication with fans and live concerts are also available. V-apps, which provide subtitles in 9 languages aimed at Korean Wave, are expected to be a platform that can meet various interests such as K-pop and beauty.
Until recently, the cumulative number of V apps has grown to 380 million, with over 60% of the total number of sales sold overseas. The percentage of downloaded overseas users exceeds 70%. V app has paid more than 200,000 paid users. Idol's debut 3-year anniversary party was broadcast live on a pay-per-view basis. Revenue is 70% for idol and 30% for Naver, excluding the commission from the App Store.
Overseas users surpassed Korea by webtoon
Naver's representative hit, WebToon, is also getting a good response from overseas. Naver has been servicing Naver WebTun, which is in Korea, through its subsidiary line, under the name of 'Line Webtun'. There are more than 500 works in total, and more than 1 million Webtoon works have been created, including "Egonoid" by Indonesian artist Archie Redcat and "Teenage Mom" by Thai artist Dotum. The number of monthly users of Line WebtoTun service surpassed 18 million in just two years since launching overseas service in June, exceeding 17 million users in Korea.
Line WebTuning, which is available in five languages, English, Chinese, Thai, Taiwanese and Indonesian, has more than 5.1 billion cumulative views in the series. As of July 2007, the number of overseas artists who were only four at the time of overseas service launches has increased to 127. Through these, 197 works have been serialized or serialized through Line Webtoon. Naver said, "Naver has applied the 'challenge cartoon' corner, which is the amateur creator space of Naver Webtoon, to Line Webtoon in the name of 'Challenge League', and has opened contests that match the characteristics of each country. "We will expand our business to Webtoon and Webtoon based content in North America and Europe."
Naver to solidify its position as a global company
In addition to Snow China (Snow China), Naver established a new company, WEBTOON Entertainment, in the US to expand its global webtoon business. In June, Has established a North American corporation 'WAV Media' for live streaming business.
Naver is also replacing top management to become a global IT leader. Chairman Lee will resign as chairman to leave for Europe and North America. Mr. Sang-heon Kim, who has laid the groundwork for Naver's global business for the past eight years, will also resign from management and act as management consultant. Han Sung-sook, vice president, was appointed as the new CEO. A vice president who graduated from Sookmyung Women's University joined Naver in 2007 after accumulating various experiences and capabilities in the IT industry such as Empas Search Division. Kim Sang-heon pointed out that Han Sung-sook, vice president of the company, has been appointed as the successor representative. "The next generation leaders, who make direct service and communicate with users, Han Sung-sook, who led the successful results of the service, was voted unanimously by the board of directors. "
The European region is considered an opportunity for Naver. This is because the European Union (EU) reacts sensitively to the US, which has a worldwide share of the global market. There are also speculations that the European Union may charge Google an additional 10% of its global income for alleged violations of antitrust laws. It is anticipated that as the sanctions on Google increase, Naver will be able to dig into the niche market.
When Naver launches in Europe, he will compete with global dinosaurs such as Facebook in the US and Tencent in China. "It is the most difficult and difficult thing to worry about how to compete with the foreign service that pushes up with huge capital," Lee said in a remarks in the past. "Internet companies that started in the US are the most afraid." The chairman has not yet given a specific plan to start any business in Europe. However, he said, "We will pursue an entirely new business, not Naver," he said. He took the initiative to acquire a promising European start-up and set out to upgrade both technology and services. With Naver's success in the Asian market, Naver's next move toward global IT leaders is expected.