Kakao 2024 Revenue Grows 4% Despite Q4 Content Segment Decline.

Philip Lee -

Seoul, South Korea - Kakao Corp (035720. KS) reported annual revenue of KRW 7.87 trillion (US$5.42 billion) in 2024, a 4% increase from 2023, while fourth-quarter revenue declined 2% year-over-year to KRW 1.96 trillion (US$1.35 billion).

The company's operating profit reached KRW 491 billion (US$338 million) for the whole year, up 7% from 2023, with an operating margin of 6.2%. 

Fourth-quarter operating profit decreased 34% year-over-year to KRW 107 billion (US$73.6 million), with operating margin contracting to 5.4% from 8.0%.

Platform revenue, which comprises 54% of total Q4 revenue, grew 10% year-over-year to KRW 1.05 trillion (US$722.7 million). 

Talk Biz revenue increased 5% to KRW 563 billion (US$387.5 million), driven by 18% business messaging growth. 

Platform-Others revenue, including mobility and payment services, rose 22% to KRW 403 billion (US$277.4 million).

Content segment revenue declined 13% year-over-year in Q4 to KRW 910 billion (US$626.3 million). 

Gaming revenue experienced the sharpest decline, 30%, to KRW 163 billion (US$112.2 million), while music revenue decreased 6%, to KRW 470 billion (US$323.5 million).

The company's total commerce gross merchandise value reached KRW 2.7 trillion (US$1.86 billion) in Q4, an increase of 3% yearly. 

Annual commerce GMV totaled KRW 10 trillion (US$6.88 billion), up 5% from 2023.

Kakao maintained cost discipline, reducing its workforce by 426 employees quarter-over-quarter to 16,715. 

Capital expenditure decreased to KRW 101 billion (US$69.5 million) in Q4 2024, compared to KRW 237 billion in Q4 2023, reflecting completed investments in data center construction.

KakaoTalk's domestic monthly active users grew to 48.95 million in Q4 2024, up from 48.46 million in Q4 2023, while global MAUs reached 54.05 million.

The company announced strategic initiatives for 2025, including plans to launch new B2C AI services through its OpenAI partnership and introduce AI features in KakaoTalk during the year's first half. 

Management focused on improving financial health and allocating strategic resources in the content segment despite business uncertainties.