Seoul: Naver Corp., South Korea's leading online portal operator, announced a substantial increase in its second-quarter net profit, attributing the growth to advancements in artificial intelligence (AI) that have bolstered its core business operations. The net income for the April to June period reached 704.3 billion won (US$494.8 million), marking a 41.6 percent increase compared to the same period last year.

According to Yonhap News Agency, Naver's regulatory filing revealed a slight decrease in operating profit to 520.3 billion won, down by 0.2 percent. However, the company's revenue surged by 16.2 percent, reaching 3.38 trillion won. The increase in revenue was largely driven by sales growth in Naver's key sectors, including commerce and advertisements, fueled by AI. The global consumer-to-consumer platforms, such as Poshmark, also contributed to the positive earnings, despite a minor dip in operating profit due to investments in AI infrastructure.

Breaking down the figures by business units, Naver's flagship search platform registered a 12.3 percent increase in sales, amounting to 1.9 trillion won. The financial platform experienced a 16 percent rise in sales to 470.7 billion won, largely thanks to the expanding Naver Smart Store. The company's global commerce platforms, including Poshmark and Wallapop, witnessed a 24.4 percent increase in sales, totaling 1.16 trillion won. Moreover, the contents division saw a slight 0.5 percent increase, while Naver's enterprise business grew by 21.3 percent year-on-year.

Looking ahead, Naver anticipates generating new revenue streams from its AI factory, a joint venture with U.S. chip giant Nvidia, expected to commence operations in the early half of next year. CEO Choi Soo-yeon expressed optimism about creating new growth momentum in the AI computing market by leveraging Nvidia's ecosystem alongside Naver's existing corporate and public clients.

In addition to its financial achievements, Naver announced the repurchase of approximately 4.9 million shares, valued at around 1 trillion won, earlier this week as part of its strategy to enhance shareholder value.