Naver's Q2 Revenue Up 30% YoY... Record High (Update)

[Asia Economy Reporter Kang Nahum] Naver recorded its highest-ever revenue in the second quarter, driven by strong performance across all business sectors including commerce, fintech, content, and cloud.

On the 22nd, Naver announced that its revenue for the second quarter of this year reached 1.6635 trillion KRW, a 30.4% increase compared to the same period last year. Operating profit rose 16.2% year-on-year to 335.6 billion KRW.

Adjusted EBITDA, which reflects actual cash-generating ability, increased 19.5% year-on-year to a record quarterly high of 480.4 billion KRW. Net profit surged 496.1% year-on-year to 540.6 billion KRW, influenced by equity method gains from A Holdings.

By business segment, the revenue share of the search platform and four new business sectors surpassed 50% for the first time, highlighting the effects of business diversification.

First, the search platform recorded 826 billion KRW, up 21.8% year-on-year and 9.7% quarter-on-quarter, driven by improvements in search quality and increased advertising efficiency. In particular, display ad revenue grew 48.0% year-on-year due to the continuous growth of performance-based advertising.

Commerce achieved 365.3 billion KRW, up 42.6% year-on-year and 12.6% quarter-on-quarter, supported by the expansion of brand stores and growth of SMEs (small and medium-sized enterprises). The number of brand stores expanded to over 450, with transaction volume growing fivefold year-on-year, and Shopping Live revenue grew 17 times year-on-year, leveraging differentiated technology and the largest SME base in Korea.

Fintech recorded 232.6 billion KRW, up 41.2% year-on-year and 11.0% quarter-on-quarter, driven by the expansion of external partnerships and growth of existing partner malls. In the second quarter, Naver Pay transaction volume grew 47% year-on-year to 9.1 trillion KRW.

Content revenue reached 144.8 billion KRW, up 28.2% year-on-year and 10.7% quarter-on-quarter, fueled by growth in webtoons and Snow. Webtoon revenue grew 53% year-on-year thanks to increased paid user conversion and expanded cross-border content. Additionally, Snow’s revenue more than doubled year-on-year due to the introduction of ads within the camera service and monetization of Zepeto.

Cloud revenue was 94.9 billion KRW, up 48.1% year-on-year and 16.2% quarter-on-quarter, driven by sustained demand for public cloud services. Naver Cloud Platform (NCP) revenue grew more than 77% year-on-year.

Han Seong-sook, CEO of Naver, said, "We have once again proven that continuous growth is possible through technological R&D, service, and business model innovation. We will further strengthen cooperation with strategic partners and actively promote the global content IP business to lay the foundation for future growth."

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