South Korea’s top internet firms – Naver and Kakao – are expected to report strong increases in both net profit and revenue for the second quarter as mobile advertising growth accelerates.
Internet portal operator Naver’s net profit for Q2 is forecast to jump 46 per cent year-on-year to KRW181 billion ($152 million), while sales are expected to increase 25 per cent to KRW949 billion, according to a report from Fn Guide.
The revenue growth is driven by strong ad sales on its mobile platform, Yonhap news agency said.
Naver, maker of the LINE messaging app, confirmed its plans last week for a long awaited initial public offering (IPO) in both Tokyo and New York in mid-July “to further enhance its strong position in Asia and to continue a more active global expansion”.
Meanwhile, Fn Guide expects Kakao, which runs the country’s most popular mobile messenger (KakaoTalk), to report a 40 per cent increase in its net profit to KRW29.9 billion for Q2 and a 59 per cent jump in revenue to KRW361 billion, Yonhap said.
Kakao’s Q1 profit dropped 65 per cent to KRW10.9 billion due to falling seasonal demand for its ad services and higher non-operational costs from its expansion into new businesses through mergers and acquisitions.