Kakao Reports Q1 Operating Profit of 120.3 Billion KRW, Up 92% Year-on-Year

Accelerating AI Development Through Kakao Brain Business Acquisition

Kakao announced on the 9th that its consolidated operating profit for the first quarter of this year reached 120.3 billion KRW, a 92% increase compared to the same period last year. Revenue rose 22% to 1.9884 trillion KRW.

By business segment, platform division revenue was 954.8 billion KRW, representing a 13% increase compared to the same period last year. TalkBiz revenue, which operates advertising and commerce businesses through KakaoTalk, increased 8% year-on-year to 522.1 billion KRW, while portal Biz revenue, including Daum, rose 1% to 84.7 billion KRW.

Platform other revenue, which includes mobility and pay services, recorded 348 billion KRW, a 24% increase from the previous year, driven by balanced growth across all business areas of Kakao Mobility such as taxi, designated driver, and parking services, as well as increased overseas and offline payment volumes of KakaoPay.

Content division revenue grew 33% during the same period to 1.0336 trillion KRW. Within the content division, music revenue surged 102% to 468.2 billion KRW. Story revenue, which is expanding into the global market, decreased by 1% to 227 billion KRW, while media revenue increased 41% to 95.2 billion KRW.

Consolidated operating expenses for the first quarter were 1.8681 trillion KRW, a 20% increase compared to the same period last year.

Kakao is accelerating the development of artificial intelligence (AI) services. To this end, on the 2nd, it decided to acquire the ultra-large AI-based language model and image generation model from its AI research and development subsidiary Kakao Brain. By combining Kakao Brain’s technological capabilities with Kakao’s service strengths, the company plans to launch AI services and promote the normalization and popularization of AI technology in everyday life.