Naver Achieves Record Highest Q3 Revenue... Surpasses '2 Trillion' Including Line (Update)

Hansung-sook, CEO of Naver

[Asia Economy Reporter Buaeri] Naver achieved its highest-ever sales this year as online shopping and content sectors grew explosively due to the impact of non-face-to-face activities in the third quarter.

On the 29th, Naver announced that it recorded sales of 1.3608 trillion KRW and operating profit of 291.7 billion KRW in the third quarter of this year. Sales increased by 24.2% compared to the previous year, and operating profit rose by 1.8% from last year.

Naver changed its sales classification from this quarter following the approval of the antitrust review for the management integration of Line and Z Holdings. Sales from its subsidiary Line were excluded. Including the Japanese subsidiary Line, third-quarter sales reached 2.0598 trillion KRW, surpassing 2 trillion KRW in a single quarter for the first time in history.

Naver also changed its existing sales classification method of advertising, business platform, IT platform, and content services to search platform, commerce, fintech, content, and cloud according to its mid-to-long-term business direction.

By business sector, sales from the search platform, including advertising, recorded 710.1 billion KRW, an 8.2% increase compared to the previous year.

Commerce sector sales, including shopping, were 285.4 billion KRW, up 40.9% year-on-year due to the continuous growth of online shopping.

The fintech sector achieved sales of 174 billion KRW, up 67.6% year-on-year, driven by the growth of Naver Pay transaction volume. Naver plans to actively expand fintech services for small and medium-sized merchants in the fourth quarter through offline point QR payments and smart store seller loans.

Content sector sales recorded 115 billion KRW, a 31.8% increase year-on-year, supported by the global growth of webtoon transaction volume.

The cloud sector posted sales of 76.3 billion KRW, a 66.2% increase year-on-year, due to increased cloud demand in the non-face-to-face environment and balanced growth across services.

CEO Han Seong-suk said, "We achieved good results through balanced growth in new growth engines such as commerce, fintech, content, and cloud businesses," adding, "Just as we laid the foundation for long-term growth through the CJ partnership and Line management integration, we will further enhance global competitiveness through synergy with various partners."

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