NAVER (035420) Q2 2025 earnings summary

Executive summary

• Q2 revenue rose 11.7% YoY and 4.6% QoQ to KRW 2.9151 trillion, driven by strong growth in advertising, commerce, and fintech.

• Operating profit reached KRW 521.6 billion, up 10.3% YoY and 3.2% QoQ, with a margin of 17.9%.

• Net profit surged 49.8% YoY and 17.4% QoQ, supported by higher equity method gains and FX gains.

• Operates Korea's top internet portal, with diversified businesses in search, commerce, fintech, content, and enterprise IT solutions, including global expansion and AI-driven innovation.

• As of June 2025, 89 consolidated subsidiaries, with recent acquisitions and business combinations strengthening global and platform capabilities.

Financial highlights

• H1 2025 consolidated revenue: KRW 5,701.9 billion, up 11% YoY.

• Operating income: KRW 1,026.9 billion, up 13% YoY.

• Net income attributable to owners: KRW 913.6 billion, up 8% YoY.

• Q2 search platform revenue: KRW 1.0365 trillion, up 5% YoY and 2.4% QoQ.

• Q2 commerce revenue: KRW 861.1 billion, up 19.8% YoY and 9.3% QoQ.

Outlook and guidance

• Expects continued growth in AI, commerce, fintech, and global content platforms.

• Ongoing investments in AI, cloud, and global expansion, including recent acquisition of Spain's Wallapop for EUR 563 million.

• AI Briefing coverage to expand to 20% of search queries by year-end, with a dedicated AI Tab launching in 2026.

• Maintains shareholder return policy: annual dividend and regular treasury share cancellation.

• Focus on growing C2C platforms and global expansion, especially in Europe.