Kakao Reports Record High with 1.258 Trillion KRW in Revenue and 157.5 Billion KRW Operating Profit (Update)

[Asia Economy Reporter Kang Nahum] Kakao recorded its highest-ever performance in the first quarter of this year, driven by balanced growth across its major business divisions including platform, mobility, and pay.

Kakao announced on the 6th that it posted sales of 1.258 trillion KRW and an operating profit of 157.5 billion KRW in the first quarter.

Sales increased by 45% and operating profit by 79% compared to the same period last year. The operating profit margin stood at 12.5%.

Specifically, platform division sales were 668.8 billion KRW, up 3% from the previous quarter and 51% from the same period last year.

Talk Biz sales rose 2% from the previous quarter and 61% year-on-year to 361.5 billion KRW. Portal Biz sales recorded 117.5 billion KRW, down 4% from the previous quarter due to seasonal off-season effects but up 1% year-on-year.

New business division sales showed the highest growth among all business sectors, reaching 189.8 billion KRW, up 9% from the previous quarter and 89% year-on-year, driven by expanded taxi sales from Kakao Mobility and increased payment transaction volume and financial services from Kakao Pay.

Content division sales reached 589.2 billion KRW, up 1% from the previous quarter and 38% year-on-year.

Paid content sales increased 7% from the previous quarter due to growth in global transaction volume, achieving 174.7 billion KRW, an 80% increase year-on-year.

Game content sales decreased 7% from the previous quarter but rose 35% year-on-year to 130.3 billion KRW. Music content sales fell 3% from the previous quarter but increased 4% year-on-year to 156.8 billion KRW.

Other IP (Intellectual Property) business sales grew 7% from the previous quarter and 55% year-on-year to 127.4 billion KRW, driven by increased video content sales from Kakao Entertainment and strong music distribution.

Operating expenses rose 1% from the previous quarter and 41% year-on-year to 1.1004 trillion KRW, influenced by increased labor costs due to steady new hiring and higher marketing expenses.