Naver Embracing Poshmark: "Increased Borrowings to Recover Within 2 Years"

"Poshmark to Turn Profitable Within 2-3 Years... Naver Webtoon Accelerates US Listing"

[Asia Economy Reporter Yuri Choi] Naver expects to restore the increased debt ratio from its acquisition of Poshmark, the No. 1 fashion resale platform in North America, to pre-acquisition levels within two years. Additionally, it forecasts that Poshmark, currently operating at a loss, will turn profitable within 2 to 3 years.

On the 7th, Kim Nam-sun, Naver's Chief Financial Officer (CFO), stated during the earnings conference call, "To reduce the increased debt from the acquisition, we plan to utilize future operating cash flow and the liquidation of some held investment assets," adding, "We expect the increased debt ratio from this acquisition to recover to current levels within two years, and the impact on financial indicators will be limited."

Naver will use its available cash and borrowing capacity to acquire Poshmark. To minimize the impact of the elevated KRW-USD exchange rate, Naver plans to utilize the dollars it holds or has hedged, as well as dollar-based borrowings.

Regarding Poshmark's current losses, CFO Kim said, "The absolute scale of recent operating losses is small," and added, "We expect a turnaround by balancing growth and profitability over the next 2 to 3 years."

Naver Webtoon, which continues its high growth trajectory, plans to accelerate its U.S. listing. Naver CEO Choi Soo-yeon emphasized, "Naver Webtoon will replicate the successful formula of rapid growth achieved domestically on the global stage, including North America," and stated, "We will do our best to list in the U.S. within a few years."

Last month, Naver Webtoon launched 'Yonder,' Wattpad's premium web novel platform, in the North American market. Additionally, it is working on system integration with eBookJapan and LINE Manga, aiming to expand original content distribution in earnest starting early next year.

The cloud business division plans to expand its global operations through organizational restructuring. On this day, Naver officially announced the reorganization into a 'New Cloud' centered on Naver Cloud by integrating AI and B2B business units such as Works Mobile, Clova CIC, Papago, and Whale. Through this, it seeks collaboration opportunities with Z Holdings, SoftBank, and supports business expansion in Japan.

CEO Choi explained, "This restructuring will consolidate the previously dispersed technical capabilities of each organization and complete an optimized business structure including infrastructure, platform, and solution capabilities," adding, "Strengthening cloud-based technology is a key task for expanding Naver's sales in Japan."

This content was produced with the assistance of AI translation services.