Naver Reports 'Record' Q2 Operating Profit... Balanced Growth Including Commerce (Update)

Q2 Sales of 2.4079 Trillion KRW and Operating Profit of 372.7 Billion KRW

Naver achieved its highest-ever performance in the second quarter of this year. While growth in the commerce sector stood out, key businesses such as fintech and content also supported the results.

On the 4th, Naver announced that its second-quarter revenue reached 2.4079 trillion KRW, a 17.7% increase compared to the same period last year. Operating profit was 372.7 billion KRW, up 10.9%, marking the largest scale ever.

Revenue by business segment was ▲ Search Platform 910.4 billion KRW ▲ Commerce 632.9 billion KRW ▲ Fintech 339.7 billion KRW ▲ Content 420.4 billion KRW ▲ Cloud 104.5 billion KRW.

Naver Q2 Earnings
Photo by Naver

The Search Platform recorded 910.4 billion KRW, a 0.5% increase compared to the same period last year. Among this, search advertising continued its growth trend, increasing by 4.3% due to product advancement that improved advertising efficiency. Place advertising revenue also grew by 92%.

Commerce increased by 44.0% year-on-year to 632.9 billion KRW. In the second quarter, Naver's total commerce transaction amount was 11.9 trillion KRW, up 14.8%.

Fintech rose 14.9% year-on-year to 339.7 billion KRW. In the second quarter, Naver Pay's payment amount was 14.6 trillion KRW, up 21.2%. External payment amount increased by 41% to 6.3 trillion KRW. Offline payment amount also recorded 1.4 trillion KRW, about double that of the same period last year, due to Samsung Pay integration, showing continuous expansion of the Naver Pay ecosystem.

Content grew 40.1% year-on-year to 420.4 billion KRW. The global webtoon integrated transaction amount increased by 8.6% to 444.8 billion KRW. In the Japan region, the proportion of original content expanded, resulting in a more than 20% increase in paid users. In the United States, the average revenue per paying user (ARPPU) also expanded by more than 20%.

Cloud and future technology-related revenue was 104.5 billion KRW. Although it decreased by 0.4% compared to the same period last year, it increased by 12.1% compared to the previous quarter. Among this, business-to-business (B2B) revenue increased by 8.2% compared to the same period last year due to growth in the public sector. Naver plans to unveil the next-generation super-large AI 'HyperClovaX' on the 24th and strengthen conversational AI service 'ClovaX' and cloud-based B2B products.

Choi Soo-yeon, CEO of Naver, said, "Based on AI technology and platform competitiveness accumulated over a long period, we will continue our growth by providing Naver's unique generative AI experience. We will support each business segment to grow one step further by utilizing AI technology accumulated through significant investments exceeding trillions of KRW over the past few years."

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