KaKao

- Consolidated sales up 4% YoY and operating profit up 18% YoY as of Q2

- Platform business: up 10% YoY in sales as of Q2

- KakaoTalk establishes a foundation for growth in the medium to long term with its fundamental competitiveness

 

[August 8, 2024] Kakao (CEO Shina Chung) announced its performance for the second quarter of 2024 based on the Korean International Financial Reporting Standards (K-IFRS), recording ₩2.0049 trillion in consolidated sales (up 4% YoY) and ₩134 billion in operating profit (up 18% YoY, +6.7% operating profit margin).

 

As for Kakao's platform business, it recorded ₩955.3 billion in Q2 sales (up 10% YoY).

 

Specifically, the Talk Biz platform that runs advertisements and e-commerce via KakaoTalk recorded ₩513.9 billion in Q2 sales (up 7% YoY). The advertisement sales of Biz Board, KakaoTalk channels, etc. in Talk Biz recorded ₩307.3 billion (up 9% YoY). And the transaction sales of KakaoTalk Gift, KakaoTalk stores, etc. recorded ₩206.6 billion (up 5% YoY).

 

KakaoTalk has continued to grow solidly in Q2, recording a domestic monthly active user (MAU) count of 48.93 million. A business model that could be embodied only in KakaoTalk has become a core growth engine of Kakao even amidst difficult domestic and foreign environments.

 

Other platform businesses, such as Kakao Mobility and Kakao Pay, collectively recorded ₩353.5 billion in Q2 sales (up 18% YoY). On the other hand, Portal Biz recorded ₩87.9 billion in Q2 sales (down 2% YoY).

 

As for Kakao's content business, it recorded ₩1.0496 trillion in Q2 sales (similar YoY).

 

Specifically, Kakao Music recorded ₩510.9 billion in Q2 sales (up 6% YoY). New albums of IVE, RIIZE and Aespa led the growth of sales and profits, recording sales of 1.7 million, 1.27 million, and 1.17 million copies, respectively.

 

Moreover, Kakao Story recorded ₩215.7 billion in Q2 sales (down 7% YoY). A turnover of Piccoma has continued to increase to more than ¥50 billion in the first half of 2024, which was influenced by a decrease of the sales converted into KRW due to the weak yen value.

 

Kakao Media recorded ₩89.6 billion in Q2 sales (up 22% YoY). This is due to a base effect in the second half of last year when a production line-up was concentrated.

 

Kakao recorded ₩1.8709 trillion in Q2 consolidated operating expenses (up 3% YoY).

 

Kakao stated that it would strengthen the existing business structure based on KakaoTalk, such as KakaoTalk Gift and channels, and establish a foundation for sustainable growth in the medium to long term by accelerating the development of new AI service, etc. which will become a new growth engine and the fundamental competitiveness of KakaoTalk. [End]