KaKao

- Record-breaking numbers continue from Q2 to Q3, with operating profit surpassing KRW 200 billion for the first time

- Platform revenue reaches KRW 1,060 billion, up 12% year-on-year

- “AI will evolve into a new revenue driver based on Talk Biz and affiliate portfolios”

 

[November 7, 2025] Kakao Corporation (CEO Shina Chung) announced on Friday that under K-IFRS (Korean International Financial Reporting Standards), its consolidated revenue for the third quarter of 2025 reached KRW 2,086 billion, up 9% year-on-year. Quarterly operating profit came to KRW 208 billion, a 59% increase from the same period last year, setting new all-time highs for both revenue and operating profit, surpassing the previous record in the second quarter.

 

Among business segments, platform revenue rose 12% year-on-year to over KRW 1,059 billion.

 

Within the platform segment, Talk Biz revenue increased 7% year-on-year to KRW 534.4 billion, with Talk Biz Advertisement growing 11% to KRW 325.4 billion—its highest level ever. Such growth in revenue was driven by a 22% increase in business message sales.

 

Talk Biz commerce revenue (including Kakao “Gifts” and “Talk Deal”) remained stable at KRW 208.7 billion, with total transaction value for “Gifts” up 1% year-on-year despite the Chuseok holiday season shifting to Q4. Self-purchase transactions within “Gifts” rose 40%, and total commerce gross merchandise value grew 4% to KRW 2.5 trillion.

 

Other platform revenue—including mobility and Kakao Pay—increased 24% year-on-year to KRW 452.7 billion. In particular, Kakao Pay’s growth, including its securities and insurance subsidiaries, along with data-driven platform services, accelerated the overall platform segment’s momentum. Quarterly operating profit also reached a new record.

 

The content segment recorded revenue of KRW 1.027 trillion, up 5% from the same period last year. Music and media revenues rose 20% and 75%, to KRW 565.2 billion and KRW 95.8 billion respectively, thanks to strong performance by major artists and higher production progress from previously delayed projects.

 

Operating expenses for the third quarter of 2025 totaled KRW 1,878 billion, up 5% year-on-year. As a result, operating profit grew 59% to KRW 208 billion, with an operating margin of 10%, marking the first double digits in four years.

 

Kakao stated it is building an “agentic AI ecosystem,” enabling users to achieve their goals and complete tasks through natural conversations. To that end, Kakao launched the “ChatGPT for Kakao” service, featuring “Kanana in KakaoTalk,” which understands user intent within conversational context, and “Kakao Tools,” an AI agent integrated with Kakao Map, Gifts, and Melon. Kakao plans to further connect “Kakao Tools” with key B2C services in finance and mobility across the group to expand its AI ecosystem. In addition, through “Play MCP” and “AI Agent Builder,” the company aims to create an open foundation that allows anyone to participate in Kakao’s AI ecosystem.

 

KakaoTalk messenger will continue service improvements after user feedback, including a revamp of the Friends tab in the fourth quarter, and gradual rollout of enhanced custom folder features and AI-powered message summarization, to deliver a more advanced messaging experience.

 

CEO Shina Chung commented, “This year, we completed the process of reinforcing Kakao’s group governance and solidifying our business portfolio. Starting next year, AI will emerge as our most important new growth engine, driving sustainable development.” [End]