KaKao

- Q4 2023 operating profit of ₩189.2 billion, achieving an operating margin of 8.7% and continuing growth every quarter in 2023

- KakaoTalk’s service reorganization enhances sales growth drivers, with the TalkBiz division, including advertising and commerce, driving performance

- Annual revenue for 2023 reaches ₩8.105 trillion with operating profit of ₩501.9 billion

 

[February 15, 2024] Kakao (CEO Hong Eun-taek) announced that it recorded consolidated revenue of ₩2.171 trillion for the fourth quarter of 2023 (up 1% QoQ and up 23% YoY), in accordance with Korean International Financial Reporting Standards (K-IFRS). 

 

The operating profit for the fourth quarter was ₩189.2 billion (up 42% QoQ and up 109% YoY) with an improved operating profit margin of 8.7%, indicating continued growth.

 

On a consolidated basis, the annual revenue for 2023 reached ₩8.105 trillion (up 14% YoY) and surpassing ₩8 trillion for the first time. The annual operating profit stood at ₩501.9 billion (down 11% YoY) with an operating profit margin of 6.2%. On a standalone basis, Kakao’s annual revenue for 2023 was ₩2.626 trillion (up 7% YoY), while the annual operating profit was ₩567.4 billion (up 5% YoY) with an operating profit margin of 21.6%.

 

Looking at the business segments, Kakao’s 4Q revenue for the platform division amounted to ₩1.121 trillion (up 10% QoQ and up 17% YoY).

 

Revenue from TalkBiz recorded ₩581.5 billion (up 14% QoQ and YoY), demonstrating robust growth. As KakaoTalk evolves through service revamps and other enhancements, profitability in advertising and commerce has increased, driving growth in TalkBiz revenue and supporting Kakao’s consolidated performance.

 

Of this, advertising revenue (up 9% QoQ and up 11% YoY) from TalkBiz, including Bizboard and KakaoTalk channels, driven by sustained growth in Bizboard, message ads, emoticons, and Talk Drawer Plus. Transaction-based revenue (up 20% QoQ and up 16% YoY) from TalkBiz, including Gift Giving and Talk Store, driven by the expansion of premium gift offerings and enhanced personalized marketing.

 

Revenue from the portal business continued to show a positive trend following its transition to an independent internal company at ₩88.1 billion (up 6% QoQ, but down 10% YoY). Other platform revenue reached ₩452.1 billion (up 6% QoQ and up 30% YoY), attributed to seasonal factors such as increased year-end consumer spending.

 

In the fourth quarter of 2023, revenue from the content division recorded ₩1.049 trillion (down 7% QoQ, but up 30% YoY).

 

Story revenue reached ₩213.4 billion (down 14% QoQ and down 4% YoY), primarily due to the focus on profitability and the ensuing marketing efficiency. Music revenue amounted to ₩498.8 billion (down 3% QoQ, but up 117% YoY). Media revenue remained similar to the previous quarter, totaling ₩106.6 billion (down 15% YoY). Game revenue stood at ₩230.6 billion (down 12% QoQ), largely due to the off-peak season in the non-gaming segments, while remaining relatively stable compared to the same period last year.

 

Operating expenses for the fourth quarter of 2023 amounted to ₩1.981 trillion (down 2% QoQ, but up 18% YoY). The annual operating expenses for 2023 were ₩7.603 trillion (up 16% YoY).

 

Meanwhile, Kakao is continuously pushing forward projects aimed at evolving KakaoTalk into a comprehensive communication service, including improvements in service revamps and user convenience. In the future, Kakao plans to strengthen a virtuous cycle structure to expand positive user experiences through the integration of KakaoTalk and AI, ensuring the continued growth of Kakao's core businesses, including advertising and commerce. [End]