Naver's second quarter net profit jumps nearly 50 percent

Internet portal Navers headquarters is seen in Seongnam Gyeonggi Province in this undated file photo Yonhap — Naver's headquarters in Seongnam, Gyeonggi Province/ Yonhap

SEOUL, August 8 (AJP) - Naver, South Korea’s largest internet company, said on Friday that its second-quarter net profit surged nearly 50 percent from a year earlier, aided by a base effect tied to changes in its corporate structure and gains across its core business segments.

Net income for the April-to-June period rose to 497.4 billion won, or about $359.6 million, the company said in a regulatory filing. That marks a 47.9 percent increase from the same period last year.

Revenue climbed 11.7 percent to 2.91 trillion won, while operating profit rose 10.3 percent to 521.6 billion won.

The sharp rise in net income was largely attributed to the inclusion of its metaverse and database unit, Naver Z, in consolidated financial statements this quarter. The unit had been excluded in last year’s results, creating what the company described as a “base effect.”

Naver’s core search platform generated 1.36 trillion won in revenue, up 5.9 percent year-on-year, supported by newly introduced artificial intelligence features designed to improve user engagement and ad performance.

E-commerce sales rose 19.8 percent to 861.1 billion won, driven by the growth of its Naver Plus Store app. Revenue from its fintech division increased 11.7 percent to 411.7 billion won.

Its content business — which includes webtoons and digital media — recorded a 12.8 percent increase in sales, reaching 474 billion won. Enterprise services revenue also grew, rising 5.8 percent to 131.7 billion won.

“We will make greater efforts to enhance our platform’s competitiveness through AI and secure new growth drivers for long-term growth and global expansion,” said Choi Soo-yeon, Naver’s chief executive, in a statement.

The results come as Naver continues to invest heavily in artificial intelligence and overseas expansion, including its efforts to grow its webtoon platform globally and strengthen its fintech ecosystem.

Kim Dong-young davekim0807@ajupress.com