KaKao

Daum Communications (“Daum“, www.daum.net) estimated revenue of 28.2 billion won, up 9% QoQ, and up 120% compared to 1Q 2002. Operating profit has marked 8.5 billion won, 23% growth QoQ and 375% growth compared to 1Q last year. For non-operating items, 6.1 billion won of equity method loss in 2002 turned out to be 0.5 billion of gains in this quarter, and it posted a recurring profit of 9.2 billion, up 303% QoQ. In addition, EBITDA recorded 12 billion won, up 13 % QoQ and up 133% from that of 1Q 2002. Therefroe, it has been growing for past 9 quarters.

In detail, Internet advertising recorded 14.7 billion won, up 7% QoQ and up 135% YoY, Internet shopping revenue marked 6 billion, up 12% QoQ and up 113% YoY, and transaction service revenue marked 7.5 billion, up 11% QoQ and up 100% YoY.

Especially, advertising revenue has shown up 135% compared to that of the same period of the previous year despite the economic recession and the low-demand seasonal effects. This is due to augmented Internet media power, especially along with Daum“s brand power as a market leader and search advertising launch. It is presumed more expansions in the second quarter by the effect of tie-up with Overture and Google. Moreover, there has been 25% increase in numbers of pageviews of searching service and unique visitors after a reformation of Daum“s front page, and it gives a positive prospect.

Daum shopping, a part of our electronic commerce business, has recorded revenue of 6 billion won, 113% increased compared to that of 1Q 2002 despite the current weak consumer confidence. It is due to consumer movements into Internet shopping malls for competitive prices in the depression period and increasing commercial transactions by Daum members.