NAVER

NAVER Reports Operating Revenue of KRW 2T in 2Q22 earnings results

 

- NAVER operating revenue increased 23.0% YoY in Q2, exceeding 2 trillion KRW for the first time

- Business segments, including Search Platform, Commerce and Fintech, delivered solid growth

- WEBTOON’s global consolidated GMV increased 19.6% as its global user base expanded to 180 million

 

2022-08-05

   

NAVER Corporation (KRX: 035420) today announced financial results for the second quarter of 2022. The company reported revenue of KRW 2.1 trillion, operating income of KRW 336.2 billion and adjusted EBITA of KRW 432.6 billion.

 

NAVER’s quarterly consolidated operating revenue reached KRW 2.1 trillion (approx. USD 1.58 billion) as it rose 23.0% YoY and 10.9% QoQ. Quarterly consolidated operating income recorded KRW 336.2 billion (approx. USD 259 million), increasing 0.2% YoY and 11.4% QoQ.

 

By business segment, NAVER’s operating revenue in Q2 from Search was KRW 905.5 billion (approx. USD 698 million); Commerce, KRW 439.5 billion (approx. USD 339 million); Fintech, KRW 295.7 billion (approx. USD 228 million); Content, KRW 300.2 billion (approx. USD 231 million); and Cloud, KRW 104.9 billion (approx. USD 81 million).

 

Search revenue grew 9.3% YoY and 6.5% QoQ to KRW 905.5 billion, driven by improved search quality and continued expansion of its display product lineup, including full-screen and headline ads.

 

Commerce revenue rose 19.7% YoY and 5.5% QoQ to KRW 439.5 billion as gross merchandise value (GMV) posted strong growth. NAVER commerce GMV in the quarter increased 20.8% YoY, recording KRW 10.3 trillion (approx. USD 7.9 billion).

 

Fintech revenue increased 27.1% YoY and 7.6% QoQ to KRW 295.7 billion as total payment value (TPV) rose to KRW 12 trillion (approx. USD 9.3 billion), up 32% YoY.

 

Content revenue, excluding the M&A effect, recorded 44.0% YoY, but decreased 4.6% QoQ due to the ‘endemic’/back-to-school season, a temporary uptick in 1Q22 Webtoon IP revenue and FX losses from weaker yen. The total global GMV of WEBTOON rose 19.6% YoY to over KRW 406.5 billion (approx. USD 313 million), showing continued growth in both paying user ratio and average revenue per paying user (ARPPU). NAVER WEBTOON has over 180 million global monthly active users (MAU).

 

Cloud and other revenue increased 10.5% YoY and 13.9% QoQ to KRW 104.9 billion through expansion into finance and healthcare sectors, which offset the high base effect from last year. NAVER Cloud was chosen as the provider for Industrial Bank of Korea’s (IBK) digital transformation project with NAVER’s unrivaled Neurocloud (hybrid cloud) technology.

 

“NAVER’s Q2 earnings showed strong growth despite the global economic slowdown,” said NAVER CEO Choi Soo-yeon. “Based on our robust ecosystem that encompasses Search, Commerce, Payment and Pay Point (point reward program), we will do our best to minimize the burden on SMEs and partners and to achieve growth that exceeds that of the market in each key business area.”

 

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[Table] NAVER’s 2^nd Quarter Earnings Result