KaKao

- The consolidated revenue rose by 16% YoY recording the highest sales ever, while the operating profit is down by 2%.

- Kakao plans to accelerate bringing the vision to life by expanding KakaoTalk, focusing on AI and healthcare, and also strengthening its global content business.

 

[Feb 10, 2023] Kakao (CEO Hong Euntaek) announced that its annual revenue reached KRW 7.071 trillion in 2022, up 16% from a year ago based on K-IFRS. Operating profit for the year declined 2% to KRW 580.5 billion.

 

Consolidated revenue for the fourth quarter of 2022 was KRW 1.774 trillion, down 5% from the previous quarter but in line with the same period last year. Operating profit was KRW 100.4 billion.

 

Platform revenue decreased 2% compared to the previous quarter and 4% year-on-year to KRW 966.8 billion in Q4 2022.

 

On the other hand, Talk Biz revenue increased 11% from the previous quarter and 9% year-on-year to KRW 520.1 billion, continuing a solid growth trend. Looking at details, Talk Biz advertising sales, such as Bizboard and KakaoTalk channels, increased by 5% compared to the previous quarter and 3% year-on-year due to the continued growth of message advertising despite the impact of the sluggish advertising market. Meanwhile, Talk Biz transaction sales grew by 19% compared to the previous quarter and 17% year-on-year due to the expansion of gift delivery products.

 

Portal Biz revenue decreased 11% from the previous quarter and 25% year-on-year to KRW 97.9 billion due to the exclusion of some consolidated subsidiaries, while revenue from other platforms fell 15% from the previous quarter and 13% year-on-year to KRW 348.8 billion.

 

Content revenue decreased 7% from the previous quarter and increased 3% year-on-year to KRW 807.6 billion.

 

Story revenue declined 4% from the previous quarter due to efforts to improve marketing efficiency, but increased 5% from a year ago to KRW 216.6 billion on the back of increased IP distribution sales. Music revenue decreased 8% from the previous quarter but increased 14% to KRW 230.5 billion.

 

Media revenue jumped 33% from the previous quarter and 39% year-on-year to KRW 124.8 billion. Gaming revenue declined 22% from the previous quarter and 17% year-on-year to KRW 230.8 billion due to a pause in new game releases and off-season effects.

 

Kakao’s operating expenses stood at KRW 1.674 billion in Q4 2022, down 2% from the previous quarter but similar to one year before. For 2022, operating expenses increased by 18% to KRW 6.526 trillion.

 

Kakao plans to focus on providing value to users, such as ease of use and convenience, in a challenging market environment, while aiming to consolidate its business model and strengthen business stability.

The company also reports that it plans to accelerate bringing the vision of the Kakao Communit “Beyond Korea” and “Beyond Mobile” to life, by ▲ expanding KakaoTalk by offering communication format and functions tailored to relationships, ▲ focusing on AI and healthcare to discover new growth drivers, and ▲ strengthening its global content business. (End)