KaKao

- Operating profit increased by 5% and platform revenue grew by 7% compared to the previous year

- Steady growth driven by TalkBiz; commerce revenue increased by 8% year-on-year, boosted by the Gift feature

 

(November 7, 2024) Kakao (CEO & Founder Shina Chung) reported its consolidated revenue for Q3 2024 under K-IFRS (Korean International Financial Reporting Standards) at KRW 1.92 trillion, a 4% decrease from the same period last year. Operating profit stood at KRW 130.5 billion, marking a 5% increase, with an operating margin of 6.8%.

 

By business segment, the platform division generated KRW 943.5 billion in revenue, up 7% year-on-year. 

 

Within the platform division, TalkBiz revenue grew by 6% to reach KRW 507.3 billion. Advertising revenue from BizBoard, Business Messages, and other ad formats totaled KRW 292.2 billion, an increase of 4% from the previous year. Notably, the adoption of TalkChannel as a key communication tool by advertisers led to a 21% increase in Business Messages revenue, continuing strong double-digit growth.

 

Transaction-based revenue from features such as Gift and TalkStore rose by 8%, reaching KRW 215.1 billion. The diverse gift lineup introduced during the Chuseok holidays and differentiated gift experiences centered around LuxTap contributed to a 5% increase in total commerce transactions for Q3, which amounted to KRW 2.5 trillion, compared to the same period last year.

 

The “Platform & Others” category, which includes mobility and KakaoPay, saw a 13% increase in revenue to KRW 359.8 billion, while portal business revenue from Daum and other services reached KRW 76.4 billion.

 

On the other hand, the content division recorded Q3 revenue of KRW 977.9 billion, a 14% decline year-on-year. 

 

In the content division, music revenue decreased by 8% to KRW 470.9 billion, while story revenue amounted to KRW 218.7 billion, down 12% from the previous year. Kakao is continuously restructuring non-core content businesses and focusing on strengthening its core markets to accelerate growth. 

 

Kakao’s consolidated operating expenses were KRW 1.79 trillion for Q3, a 5% decrease from the previous year, reflecting proactive cost-efficiency measures in response to the expected market and business environment conditions for the second half of the year. 

 

Looking ahead, Kakao plans to roll out new AI services, including Kanana, as well as various AI-integrated services and features, aiming to provide innovative value to users and partners in 2025. [End]