Naver's operating profit up 39% in Q2Updated: 2014-07-31 22:01:19 (KST)
Naver's strong second quarter numbers came from overseas sales that were boosted by Line.
Its operating profit went up 38-and-a-half percent on-year, to 191.2 billion won, or roughly 186-million U.S. dollars.
Line, its Japan-based messenger app, saw its sales soar on-year, during the period.
And it's not just the volume of sales that's given the company a green light for expansion
Analysts point to Line's increased sales coming outside of Japan.
"Around 80 percent of Line's revenue came from Japan in the past but the second quarter number shows that 25 percent of the revenue is coming from other countries, like Thailand."
Although Naver's CFO has warned of an aggressive marketing plan later this year potentially hurting its future earnings, the market seems to like Naver's globalization of its sales sources.
With Line, its main growth engine, set to go public in Tokyo and in the U.S. some are predicting a new race in the global messaging market, which is currently led by three leaders -- Facebook's WhatsApp, Tencent's WeChat based in China and Naver's Line, dominating the Japanese market.
"Looking at the e-mailing services market and search engines, there has been multiple players that took leadership in particular regions. But this was combined into one or two global companies, so a power shake-up in the messaging market will likely take place."
"Anaylsts also expect a cut-throat competition among messaging service providers as they jockey for position in the Latin American and Northeast Asian markets, where no one company has established itself.
Hwang Ji-hye, Arirang News."
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