KaKao

- Q2 revenue up 10% YoY for its platform segment, reaching ₩1,055.2 billion

- Major KakaoTalk overhaul planned, with a variety of services to usher in the era of “AI For All”

 

[August 7, 2025] Kakao (CEO Shina Chung) announced on August 7 that it recorded consolidated revenue of ₩2,028.3 billion in the second quarter of 2025 (+1% YoY) according to its financial reporting, according to the Korean International Financial Reporting Standards (K-IFRS). Operating profit for the second quarter was ₩185.9 billion (+39% YoY). Both revenue and operating profit hit an all-time quarterly high.

 

By business segment, platform segment revenue in the second quarter rose to ₩1,055.2 billion (+10% YoY).

 

Within this, Talk Biz revenue rose to ₩542.1 billion (+7% YoY) and Talk Biz advertising revenue to ₩321.0 billion (+4% YoY). Notably, Business Message revenue jumped 16%, driven by expanded message templates that allow advertisers to send a wider variety of messages for more use cases. This is expected to support mid- to long-term revenue growth.

 

Talk Biz commerce revenue, including KakaoTalk Gift and Talk Deal, reached ₩221.2 billion (+10% YoY), boosted by a rise in self-purchases, which involve users sending gifts to themselves via the Gift service. Total commerce gross merchandise volume for the second quarter was ₩2.5 trillion (+6% YoY).

 

Other platform revenue, including Kakao Mobility and Kakao Pay, grew to ₩434.8 billion (+21% YoY). The expansion of parking and quick delivery services drove mobility growth. Meanwhile, Kakao Pay recorded double-digit revenue growth year-over-year thanks to strong performance in both financial and platform services. Portal Biz revenue for the second quarter stood at ₩78.3 billion (-11% YoY).

 

In the content segment, revenue in the second quarter of 2025 recorded ₩973.1 billion (-7% YoY). Game revenue declined, but Music and Story revenue each grew to ₩517.5 billion (+1% YoY) and ₩218.7 billion (+1% YoY), respectively. Media revenue increased to ₩94.2 billion (+5% YoY).

 

Second quarter operating expenses were ₩1,842.4 billion (-2% YoY). As a result, operating profit stood at ₩185.9 billion (+39% YoY) with an operating margin of 9.2%.

 

Kakao is preparing a large-scale overhaul of the KakaoTalk service. Kakao is strengthening its AI infrastructure and language models to expand the AI ecosystem, while also planning to roll out a variety of services in the second half of the year to make AI readily accessible in daily life for everyone in Korea.

 

Kakao CEO Shina Chung stated, “Through the upcoming KakaoTalk overhaul, we will establish a virtuous cycle where platform traffic growth naturally translates into revenue. In the second half, we will launch diverse KakaoTalk-connected AI services one after another to open the era of AI for everyone in Korea.” (E.O.D.)