Kakao Pay Turns Profitable in 1Q... Net Profit of 167 Million Won

Overseas and Offline Payments Increase Sales Up
Steady Growth Continues in Securities and Insurance Sectors

Kakao Pay, which posted a loss last year, returned to profitability in the first quarter of this year.

Kakao Pay announced on the 7th that its net profit for the first quarter of this year (consolidated basis) recorded 167 million KRW, turning profitable at the breakeven point. Although it posted an annual net profit of 26.8 billion KRW in 2022, it shifted to a loss last year after one year, and returned to quarterly profit this year. Sales in the first quarter of this year reached 176.3 billion KRW, a 25% increase compared to the same period last year.

Transaction volume and revenue-contributing transaction volume (Revenue TPV) continued to grow. The transaction volume in the first quarter of this year was 40.9 trillion KRW, up 26% from the same period last year. Payment service transaction volume surged due to overseas and offline transactions, and financial service transaction volume also showed results as demand for refinancing and mortgage loans increased. Revenue-contributing transaction volume grew by 31%, reaching 11.9 trillion KRW. This indicator separately classifies transaction volume that actually contributes to revenue generation, showing future profitability.

However, operating expenses in the first quarter of this year increased by 20% compared to the same period last year, reaching 186.1 billion KRW. Labor costs rose due to the expansion of the financial services business, and fees and service costs increased following sales growth at Kakao Pay Securities and Kakao Pay Insurance. Kakao Pay stated that it plans to strategically manage costs considering the profit and loss structure and growth pace of each business to improve profitability.

Looking at the performance of subsidiaries, Kakao Pay Securities’ entrusted assets such as funds, stocks, and deposits recorded 2.7 trillion KRW in the first quarter of this year, an 80% increase compared to the same period last year. During the same period, stock transaction volume reached 11.8 trillion KRW, a 154% increase compared to the same period last year. The company explained that it improved the trading environment by launching services that enhance stock investment convenience, such as ‘Stock Accumulation’ and ‘US Stock Day Market Service.’ Kakao Pay Insurance is steadily entering a growth trajectory by continuously introducing innovative products. In particular, travel insurance surpassed 1 million cumulative subscribers within 10 months of its launch.