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Naver’s 2nd Q operating profit hovers above 875 mil. dollars

Naver’s 2nd Q operating profit hovers above 875 mil. dollars

Posted July. 29, 2016 07:29,   

Updated July. 29, 2016 08:27

한국어

South Korea's biggest internet portal operator Naver and largest mobile carrier SK Telecom have drawn a sharp contrast in their operating profit in the second quarter of this year.

On the back of overseas market expansion through its subsidiary Line Corp., Naver posted an all-time high record in revenues, overseas revenues and operating profit. By contrast, SK Telecom’s performance in the second quarter was less than satisfactory owing in large part to its botched attempt to acquire CJ HelloVision, with its revenue growth rate hovering beneath 1 percent and its operating profit failing to meet the market expectation.

Naver announced Thursday that its second quarter revenue stood at 987.3 billion won (875.2 million U.S. dollars), an increase of 26.3 percent year-on-year. Of this, the overseas revenue takes up 73 percent at 722.9 billion won (640.8 million dollars), and the content revenue reached accounted for 24 percent at 235.7 billion won (289.5 million dollars). Also notable is the fact that the character sales have risen by 64.7 percent year-on-year to reach 28.7 billion won (25.44 million dollars).

Naver is planning to expand the business with an emphasis on its webtoon service, a live video service “V," and a video communication app “Snow” in the global market while focusing on the expansion of its online quick-payment services "Naver Pay” in Korea.

“As for 'Snow,' we are seeking to branch out into a social video platform in cooperation with media companies, and as far as the app V is concerned, we are working towards creating the next Line by generating extensive contents in conjunction with broadcasting companies and entertainment agencies,” said Naver CEO Kim Sang-heon. "Naver is planning to expand the partnership of Naver Pay into larger entities including financial and telecommunication companies.



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