Naver and Kakao Post Strong Q3 Results... "AI to Drive Continued Growth"

[Financial News] The two major platform companies, Naver and Kakao, are both expected to report strong results for the third quarter of this year. Naver’s commerce division is leading growth, fueled by the expansion of Artificial Intelligence (AI) services and its membership ecosystem. Meanwhile, Kakao is set to maintain its growth trajectory by fully integrating AI technology starting next month.
■ Naver Anticipated to Achieve Record Quarterly RevenueAccording to the Financial Supervisory Service’s electronic disclosure on the 26th, Naver and Kakao will announce their third-quarter results on the 5th and 7th of next month, respectively. While Naver’s search platform segment is experiencing slower growth due to the sluggish economy, its commerce business is expected to post high revenue, driven by increased commission rates. Financial data provider FnGuide estimates that Naver’s consolidated revenue for the third quarter will reach approximately 3.0423 trillion won, up 12.0% year-on-year. Operating profit is projected at 569.7 billion won, an 8.4% increase from the same period last year. Naver is poised to set new records for both revenue and operating profit this quarter.
Naver is strengthening its commerce ecosystem by expanding its 'Naver Plus Membership'—following its partnership with Netflix, it launched 'Kurly N Mart' with Kurly last month and introduced benefits from Uber’s subscription service, 'Uber One.' The market is paying close attention to Naver’s performance next year, as the impact of AI adoption across all services is expected to become more pronounced. Furthermore, with the merger of NAVER Financial and Dunamu, Dunamu’s consolidated results will be reflected from next year, potentially driving significant growth. Lee Ji-eun, a researcher at Daishin Securities, analyzed, "If Naver incorporates Dunamu as a subsidiary through NAVER Financial, operating profit could increase by more than 60% next year."
■ Kakao Expected to Maintain Rapid Growth for Second Consecutive Quarter
Kakao, which delivered an earnings surprise in the second quarter, is forecast to post consolidated third-quarter revenue of about 2.0236 trillion won, up 5.3% year-on-year. Notably, operating profit is expected to surge 25.5% to 163.8 billion won, reflecting robust growth. Although the third quarter is typically a slow season for the advertising market, expansion in Talk Biz revenue and steady commerce growth are expected to drive performance.
Kakao is also projected to enter a major growth phase through a variety of new AI services for KakaoTalk. Last month, Kakao announced its first major overhaul of KakaoTalk in 15 years, revealing that users will be able to access OpenAI’s generative AI, ChatGPT, directly within the app starting in October. An AI Agent feature is also set to launch next month. The market anticipates that these AI-driven innovations will lead to new business models.
Meanwhile, on the 21st, Kim Beom-soo, head of the Future Initiative Center, was acquitted in his first trial, easing some of Kakao’s legal risks. Lee Hyo-jin, a researcher at Meritz Securities, commented, "With Kim Beom-soo’s acquittal in the first trial, the worst of the negative sentiment has passed. For the strong momentum seen through August to reappear, the results of upcoming updates will be crucial. The introduction of ChatGPT will be the key factor determining the company’s direction."

wongood@fnnews.com Joo Won-gyu Reporter