Naver reports record Q2 operating profit with strong growth across most segments

By Kim Joo-heon Posted : August 9, 2024, 15:14 Updated : August 9, 2024, 15:14
Naver's logo is seen at the company's main office. Courtesy of Naver
SEOUL, August 9 (AJU PRESS) - Korean tech giant Naver reported a record-high operating profit for the second quarter on Friday, fueled by strong growth across most business segments, including search services, commerce and financial technology.

Naver said in a regulatory filing that its operating profit increased by 26.8 percent year-on-year to 472.7 billion won ($343.6 million) for the April-June period. Revenue surged 8.4 percent to 2.6 trillion won.

Its adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also hit a record high of 638.4 billion won, marking a 23.9 percent increase from the same period last year.

The search platform business generated 978.4 billion won in revenue, a 7.5 percent year-on-year increase. The financial technology (fintech) segment rose 8.5 percent to 368.5 billion won, while content generated 420 billion won, down 0.1 percent. The cloud business contributed 124.6 billion won, up 19.2 percent.

Commerce grew by 13.6 percent year-on-year to 719 billion won, supported by the continued growth of its resale platform KREAM and delivery services.

Meanwhile, Webtoon Entertainment, which operates Naver's webcomic service, released its first quarterly earnings report since its listing on the Nasdaq in June. Revenue for the second quarter was $321 million, representing a 0.1 percent increase compared to the same period last year.

Despite the impact of a weaker Korean won and Japanese yen, Webtoon Entertainment's revenue remained stable year-over-year, with record-high earnings from paid content and advertising in Japan.

In the second quarter, it had 166.3 million monthly active users (MAU) and 7.8 million monthly paying users (MPU).

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