NAVER Q2 Earnings: 11.7% Revenue Growth, Strong Profit

Seoul, South Korea - NAVER Corp reported second-quarter revenue of KRW 2.915 trillion (US$2.16 billion), an increase of 11.7% from the same period in the previous year.

Operating profit for the quarter ended June 30 was KRW 521.6 billion (US$386 million), up 10.3% year-on-year.

Operating margin was 17.9%. Net profit was KRW 497.4 billion (US$368 million), an increase of 49.8% from the prior year period.

• The search platform segment generated revenue of KRW 1.036 trillion (approximately US$768 million), representing a 5.9% year-over-year increase.
• The commerce segment's revenue was KRW 861.1 billion (US$638 million), representing a 19.8% annual increase.
• Fintech revenue totaled KRW 411.7 billion (US$305 million), an increase of 11.7%.
• Contents segment revenue was KRW 474.0 billion (US$351 million), up 12.8%.
• Enterprise segment revenue was KRW 131.7 billion (US$98 million), up 5.8%.

Total NAVER platform advertising revenue, which includes search, display, commerce, fintech, and webtoon advertisements, increased 8.7% year-on-year.

Transaction processing volume in the fintech segment reached KRW 20.8 trillion (US$15.4 billion) in the second quarter, up 18.7% year-on-year.

Non-captive transaction processing volume was KRW 11.2 trillion (approximately US$8.3 billion), representing a 27.1% annual increase.

On-platform gross merchandise value increased 9.0% year-on-year. SNOW revenue within the contents segment increased 27.8% year-on-year.

Operating expenses totaled KRW 2.393 trillion (approximately US$1.77 billion), representing a 12.0% increase from the prior year.

Development and operations expenses totaled KRW 699.3 billion (US$518 million), representing a 2.4% increase.

Partner expenses totaled KRW 1.014 trillion (approximately US$751 million), representing a 10.6% increase. Infrastructure expenses totaled KRW 197.7 billion (US$146 million), representing a 15.2% increase.

Marketing expenses totaled KRW 482.4 billion (US$357 million), representing a 31.5% increase.

Non-operating profit was KRW 162.1 billion (US$120 million) compared to a loss of KRW 5.3 billion in the prior year quarter.

Equity method gains were KRW 161.2 billion (approximately US$119 million), compared to KRW 89.1 billion in the prior year.

The company will cancel 1% of its treasury shares on August 12, representing 1,584,370 shares valued at KRW 368.4 billion, based on the closing prices as of August 4.

NAVER Cloud is pursuing projects related to large language models and GPU-as-a-Service offerings. Overseas initiatives include a sovereign large language model project in Thailand, an AI datacenter in Morocco, robotics work in Saudi Arabia, and an AI-based care call service in Izumo City, Japan.

WEBTOON Entertainment will release separate earnings results on August 12.

(US$1 = KRW 1,350 as of June 30, 2025)