“Naver recorded its highest-ever operating profit in the third quarter this year due to strong performance in its search and advertising business.
On the 8th, Naver announced that its consolidated operating profit for the third quarter of this year surged by 38.2% compared to the same period last year, reaching 525.3 billion KRW based on preliminary figures. Revenue for the same period increased by 11.1% to 2.716 trillion KRW, and net profit rose by 48.8% to 530.1 billion KRW.
In terms of business segments, the search platform’s revenue was 9.977 trillion KRW, up 11% from the same period last year, thanks to increased user engagement and expanded exposure to new services through short-form videos and personalized content recommendation feeds. This marks a return to double-digit growth rates after ten quarters.
Commerce revenue grew by 12% year-on-year to 7.254 trillion KRW. Increased transaction volume driven by collaboration with brands, enhanced membership benefits, and improved delivery quality, along with a rise in the usage of the brand solution package and arrival guarantees, contributed to this growth. The company plans to continue strengthening competitiveness by offering highly personalized shopping experiences and tailored benefits.
The fintech segment’s revenue increased by 13% to 3.851 trillion KRW during the same period. Naver Pay’s transaction volume increased by 22.1% year-on-year to 18.6 trillion KRW due to ongoing expansion in the external ecosystem, while offline transaction volume surged by 78% fueled by growth in on-site payments and order and reservation payments.
Revenue in the content segment grew by 6.4% to 4.628 trillion KRW, with Japan’s LINE Manga achieving record high monthly active users (MAU) and paid user numbers, driving an increase in paid content revenue. The cloud segment recorded a 17% increase, reaching 1.446 trillion KRW, driven by growth centered around Naver’s generative AI ‘HyperClovaX’-powered enterprise hybrid cloud Neurocloud and collaboration solution LINE WORKS.
Soo-yeon Choi, CEO of Naver, stated, ‘Naver continues to advance platform sophistication by enhancing search with AI and data, and expanding ultra-personalized services tailored to users’ interests.’ She added, ‘By applying generative AI to online and offline experiences such as Place, Maps, Real Estate, and Digital Twins, we aim to discover future growth engines and create new business opportunities.'”