Kakao Pay Reports 630 Million KRW Net Profit in 2Q... Consecutive Quarterly Profits Maintained

Kakao Pay achieved profitability for two consecutive quarters, driven by increased sales in payment and financial services.

Kakao Pay announced on the 6th that its consolidated net profit for the second quarter of this year was 626 million KRW, a 274.9% increase compared to the previous quarter (167 million KRW). Operating loss for the same period was recorded at 7.27 billion KRW, a 42.2% decrease from 12.581 billion KRW in the same period last year and a 25.1% reduction compared to 9.74 billion KRW in the previous quarter.

Revenue for the second quarter of this year reached 185.497 billion KRW, up 24.6% year-on-year. Payment service revenue increased by 12% year-on-year to 121.4 billion KRW, driven by the expansion of offline payment locations and growth in overseas payments. Financial service revenue rose 60% year-on-year to 55.2 billion KRW. Other service revenue also increased by 44% year-on-year due to growth in advertising revenue and users of the card recommendation service.

Transaction volume and revenue-contributing transaction volume (Revenue TPV) continued to grow. Transaction volume for the second quarter of this year was 41.1 trillion KRW, a 20% increase year-on-year. Revenue-contributing transaction volume grew 22% to reach 12.1 trillion KRW. This metric separately classifies transaction volume that contributes to actual revenue generation, indicating future profitability.

Looking at the performance of subsidiaries, Kakao Pay Securities’ entrusted assets, including funds, stocks, and deposits, increased by 65% year-on-year, surpassing 3 trillion KRW as of early last month. Stock trading volume rose 74% year-on-year to 12 trillion KRW. Kakao Pay Insurance secured 1.5 million subscribers within a year and reportedly achieves double-digit sales growth each quarter. Its sales in the second quarter of this year grew 28% compared to the previous quarter.