Kakao Soars Again in Q2... Record High Revenue and Operating Profit (Update)

Joo Sooyong and Yeo Minsu (right), Co-CEOs of Kakao

[Asia Economy Reporter Buaeri] Kakao's rapid growth continues. Kakao recorded another all-time high performance in the second quarter of this year. Revenue set a record for 17 consecutive quarters, and operating profit reached a record for 10 consecutive quarters.

Kakao announced on the 6th that its second-quarter revenue reached 1.3522 trillion KRW, and operating profit was 162.6 billion KRW. These figures represent increases of 42% and 66% respectively compared to the previous year.

Kakao's strong performance was driven by the expansion of advertising and commerce businesses based on KakaoTalk, new business sectors, and content business. Kakao's revenue is divided into two categories: the 'Platform segment' and the 'Content segment.'

Platform segment revenue was recorded at 761.8 billion KRW, a 47% increase from the previous year. Talk Biz revenue, which includes KakaoTalk advertising and commerce, reached 390.5 billion KRW, up 52% year-on-year. Advertising revenue hit an all-time high due to growth in Biz Board and KakaoTalk Channels.

Portal Biz revenue increased by 7% year-on-year to 125.1 billion KRW. Other segment revenue continued its strong growth, rising 73% year-on-year to 246.2 billion KRW, driven by increased demand for premium taxis from Kakao Mobility and expanded payment transaction volume from Kakao Pay.

The growth of content businesses such as webtoons and games also contributed to improved performance. Content segment revenue was 590.4 billion KRW, a 35% increase from the previous year. Story revenue reached 186.4 billion KRW, growing 57% year-on-year, driven by Kakao Japan's webtoon platform 'Piccoma,' which ranked first in comic app revenue, and increased global intellectual property (IP) distribution transaction volume from Kakao Entertainment.

Music revenue was 188.1 billion KRW, up 11% year-on-year. Media revenue (original content, dramas, movies, entertainment) recorded 87.4 billion KRW, a 112% increase year-on-year, thanks to the popularity of Kakao Entertainment's content. Game revenue increased 20% year-on-year to 128.6 billion KRW.