Kakao Q2 2024 Earnings: $97M Profit, KakaoTalk User Growth

Seoul, South Korea - South Korean internet giant Kakao Corp (035720.KS) reported a 18% year-on-year increase in second-quarter operating profit on Thursday, driven by strong performance in its platform business and music segment.

The company's operating profit rose to KRW134 billion (US$97 million) in the April-June quarter, while revenue grew 4% to KRW2,005 billion (US$1,455 million).

Kakao's flagship product, the messaging app KakaoTalk, continued to expand its user base in Korea, adding 725,000 monthly active users year-on-year to reach 48.93 million. 

This growth, coupled with strong performance in Business Messaging and Kakao Pay, underpinned the platform segment's 10 per cent year-on-year revenue increase.

The music segment, bolstered by new album releases from popular K-pop acts like IVE and aespa, saw a 6 per cent year-on-year revenue growth.

However, the company's gaming segment faced headwinds, with revenue declining 13% year-on-year.

Kakao is intensifying its focus on AI development, increasing investments in data centers and server infrastructure to support future growth.