Naver's Q2 Profit Soars 26.8% on Strong AI and Fintech Growth

SEONGNAM, South Korea - South Korean internet giant Naver (035420. KS) reported a 26.8% jump in second-quarter operating profit on Friday, driven by strong performance across its major business segments.

The company's operating profit rose to KRW 472.7 billion ($343 million) for the quarter ended June 30, up from KRW 372.7 billion a year earlier. 

Revenue increased 8.4% to KRW 2,610.5 billion ($1,894 million).

Naver's search platform and commerce businesses were key growth drivers, with revenues increasing 7.5% and 13.6% year-on-year, respectively.

The company's search platform revenue growth was buoyed by the introduction of bidding for local ads and enhanced targeting for search ads.

Naver's fintech arm saw Total Payment Volume surge 20.1% to KRW 17.5 trillion ($12.7 billion). 

Non-captive TPV grew 40.1% year-on-year, exceeding 50% of total TPV for the first time.

Revenue from AI model monetization contributed to a 19.2% year-on-year growth in cloud revenue. 

Naver is collaborating with tech giant Intel and developing its HyperCLOVA X (HCX) services.

The company's net profit rose 15.8% to KRW 332.1 billion ($241 million) despite a 40.3% quarter-on-quarter decline due to one-off gains in the previous quarter.

Naver continues investing in AI and cloud technologies, with plans to further monetize its HyperCLOVA X AI model and expand its cloud services offerings.

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