Naver Achieves Record-High Q2 Revenue, Operating Profit Down 0.2% Year-on-Year

Growth Driven by AI in Advertising and Commerce Revenue
Operating Profit Slightly Down Due to AI Investments

Naver reported its highest-ever quarterly revenue, driven by strong performance in its core businesses such as advertising and commerce. However, operating profit saw a slight decline due to investments in artificial intelligence (AI) infrastructure.

On August 7, Naver announced in a regulatory filing that its consolidated revenue for the second quarter of this year reached KRW 3.3888 trillion, up 16.2% from the same period last year. During the same period, operating profit was KRW 520.3 billion, representing a 0.2% decrease year-on-year.

Gyeonggi Seongnam Naver Headquarters. Photo by Jinhyung Kang aymsdream@

Second quarter revenue continued to increase not only due to solid results in core businesses such as advertising and commerce, boosted by the integration of AI, but also as its global customer-to-customer (C2C) business expanded. However, operating profit declined slightly, influenced by investments in AI infrastructure and related factors.

By business segment, Naver's platform revenue rose 12.3% compared to the same period last year, reaching KRW 1.9022 trillion. Advertising revenue benefited from AI-driven optimization and advanced targeting, with AI contributing over 60% to sales growth. Service revenue also climbed 31.3% year-on-year, fueled by the growth of the commerce ecosystem.

Financial platform revenue grew 16.0% year-on-year to KRW 470.7 billion. In the second quarter, the total transaction volume for Naver Pay (Npay) reached KRW 25.2 trillion, up 21% from the same period last year.

In the global business segment, driven by the C2C business, revenue climbed 24.4% year-on-year to KRW 1.0159 trillion. C2C revenue surged by 74.9% from the previous year as Naver’s global platforms such as Wallapop, Poshmark, and SODA continued to see growth in both gross merchandise value and revenue.

Content revenue increased by 0.5% year-on-year, while enterprise revenue rose by 21.3% from the prior year, driven by robust growth in business-to-business (B2B) sales related to AI and digital twin solutions.

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