Seoul: Naver Corp., South Korea's largest online portal operator, announced on Friday that its net profit for the second quarter experienced a significant rise of nearly 50 percent compared to the previous year, attributing this increase to a base effect. The company reported a net income of 497.4 billion won (US$358.7 million) on a consolidated basis for the April-June period, marking a 49.8 percent growth from the 332.1 billion won recorded a year earlier.
According to Yonhap News Agency, Naver's earnings surpassed market expectations, with analysts predicting an average net profit of 430.9 billion won, as per a survey conducted by Yonhap Infomax, the financial data firm of Yonhap News Agency. The company also reported an operating income of 521.6 billion won, reflecting a 10.3 percent increase from the previous year, while sales climbed by 11.7 percent to reach 2.91 trillion won.
The company attributed the notable rise in net profit to a base effect, influenced by the previous year's exclusion of its database unit, Naver Z Corp., from the consolidated balance sheet. Naver's flagship search platform unit experienced a 5.9 percent increase in sales, reaching 1.04 trillion won, driven by a new search service powered by artificial intelligence (AI). Additionally, sales from the commerce unit surged by 19.8 percent to 861.1 billion won, and revenue from the financial technology unit improved by 11.7 percent to 411.7 billion won.
Furthermore, the content unit reported a 12.8 percent growth in revenue, reaching 474 billion won, while sales from the enterprise business advanced by 5.8 percent to 131.7 billion won over the reviewed period. CEO Choi Soo-yeon expressed the company's commitment to enhancing platform competitiveness through AI and securing new growth drivers for sustained long-term growth and global expansion.