KaKao

- Records a 12% year-over-year increase in consolidated revenue, breaking the KRW 2 trillion mark in a single quarter.

 

[August 3, 2023] Kakao (CEO Hong Eun-Taek) has reported a record-breaking achievement, registering 2.425 trillion won in quarterly revenue for the first time in Q2 of 2023. According to the Korean International Financial Reporting Standards (K-IFRS), this marks a 17% increase from the previous quarter and a 12% rise compared to the same period last year. However, the operating profit saw mixed results, with a 60% increase quarter-over-quarter but a 34% decrease year-over-year, totaling 113.5 billion won, leading to an operating margin of 5.6%.

 

The revenue for Kakao's platform sector in Q2 2023 was 988.7 billion won, showing a 2% increase from the previous quarter and a 6% rise year-over-year.

 

In the Talk Biz segment, despite a 2% decline from the previous quarter, the revenue increased by 11% year-over-year to 503 billion won, indicating steady growth. Advertising revenues, including Bizboard and KakaoTalk Channel, grew by 12% quarter-over-quarter and 4% year-over-year. Transaction-based revenues like Gift and Talk Store decreased by 16% from the previous quarter but increased by 21% compared to the same period last year. Portal Biz generated 89.5 billion won, up 7% from the previous quarter but down 13% year-over-year. The 'Other' platform revenue, boosted by growth in all sectors of Kakao Mobility and increased overseas transactions from Kakao Pay, recorded 396.3 billion won, an 8% increase quarter-over-quarter and a 6% rise year-over-year.

 

The content segment also showed robust growth, with revenue reaching 1.0538 trillion won, a 36% increase from the previous quarter and an 18% rise from the same period last year.

 

Story revenue, driven by transaction growth in Japan and North America, reached 231 billion won, showing a 1% increase both quarter-over-quarter and year-over-year. Music revenue skyrocketed to 480.7 billion won, marking a 107% increase from the previous quarter and a 130% rise year-over-year. Media revenue stood at 73.5 billion won, up 8% from the previous quarter but down 38% year-over-year. Game revenue, at 268.6 billion won, increased by 9% from the previous quarter but saw a 20% decline year-over-year.

 

Operating expenses in Q2 2023  totaled 1.929 trillion won, up 16% from the previous quarter and 17% year-over-year, influenced by AI infrastructure investments, data center diversification, and the integration of connected companies.

 

Additionally, KakaoTalk’s transformative initiatives launched last year have led to increased user engagement, with the Open Chat and Friends tabs seeing daily visits of ten million and thirty million users, respectively. Kakao is committed to reinforcing its infrastructure for stable and continuous service delivery, with ongoing investments in future growth areas like artificial intelligence and healthcare. (End)