KaKao

Second quarter revenue totaled KRW 226.5 billion

with 52% coming from mobile-related businesses

 

[Seoul, South Korea – August 13, 2015] Daum Kakao Corp. (KOSDAQ 035720) today reported second quarter financial results under Korean-IFRS. Daum Kakao’s consolidated revenue for the quarter was KRW 226.5 billion with mobile-related businesses making up 52%.

 

Second quarter results show Daum Kakao maintaining sound revenue figures while actively investing in prospective growth sources.

Daum Kakao’s advertising platforms showed 2.2% YoY growth with total revenue of KRW 150.7 billion. Strong performance in display ad sales and a steady increase in revenue from KakaoStory performance ads drove QoQ growth of 6.3%. Game platform revenue decreased 13.7% YoY to KRW 54 billion due to increased competition in the mobile game platform market. Strengthening of KakaoTalk Gift Store’s product lineup and diversification of commerce channels contributed to 55.3% YoY revenue growth for commerce platforms. Continued growth in KakaoPage and other mobile content platforms plus the introduction of new services, such as KakaoMusic streaming, led to a 27.3% YoY revenue increase in Others. 

 

As a result of emphasis on new service launches and aggressive M&As, Daum Kakao’s operating cost for second quarter was KRW 215 billion. The figure included KRW 19.7 billion in advertising costs as extensive marketing activities were carried out for KakaoTaxi, KakaoPay and other services. 

 

Quarterly revenue of KRW 226.5 billion represents a 0.6% increase with an operating income of KRW 11.4 billion and a net income of KRW 21.4 billion. 

 

For the second half of 2015, Daum Kakao will continue to focus its resources on growing core businesses and services. By recently adding a number of convenient new features such as #(Sharp) Search, Channel, Video Call and KakaoTV, KakaoTalk continues its evolution from a communication platform to a comprehensive life platform. KakaoTaxi has emerged as the premier taxi brand in the country with 140,000 participating drivers and 240,000 daily requests. After recording more than 12 million total requests in a little over four months, KakaoTaxi is preparing to launch a premium, paid model in October and signed a memorandum of understanding with the Seoul Taxi Association and Korea Smart Card’s High End.

KakaoPay, which currently has five million users and is accepted by 216 major retailers, will expand into electronic bill presentment and payment (EBPP) services following recent approval by the Financial Supervisory Service. Launches of KakaoTalk Time Coupon and KakaoOrder in the fourth quarter are also expected to boost KakaoPay’s growing user base.

 

Big second half results are also expected from ‘Friends Pop for Kakao’, the first mobile game featuring Kakao Friends characters, which recorded 750,000 pre-orders in just eight days, and all-in-one phone call app KakaoHello. 

 

By creating new connections that offer tangible user benefits and by focusing on durable, strategic investments, Daum Kakao will continue its efforts to grow into a full-fledged mobile life platform company. (End)