Kakao Q2 Operating Profit Surges 39% on Platform Growth

Seoul, South Korea — Kakao Corp reported operating profit of KRW 185.9 billion (US$134.7 million) in the second quarter, a 38.8 percent increase from the same period last year.

Total revenue was KRW 2.03 trillion (approximately US$1.47 billion), a 1.2 percent increase year-over-year.

Net profit was KRW 171.8 billion (US$124.5 million), a 97.2 percent increase from the previous year.

The company's platform division generated KRW 1.06 trillion (approximately US$765.2 million) in revenue, accounting for 52 percent of total revenue and a 10.5 percent year-over-year increase.

Content division revenue was KRW 973.1 billion (US$705.0 million), a 7.3 percent decrease from the previous year.

Within the platform segment, Talk Biz recorded revenue of KRW 542.1 billion (approximately US$392.8 million), a 6.8 percent increase year-over-year.

Portal Biz revenue declined 10.9 percent to KRW 78.3 billion (US$56.7 million). Platform-Others revenue increased 20.8 percent to KRW 434.8 billion (US$315.1 million).

Gaming revenue decreased 38.9 percent to KRW 142.6 billion (US$103.4 million). Music revenue increased 1.3 percent to KRW 517.5 billion (US$375.2 million).

Story revenue increased 1.4 percent to KRW 218.7 billion (US$158.5 million). Media revenue increased 5.2 percent to KRW 94.2 billion (US$68.3 million).

Operating expenses totaled KRW 1.84 trillion (approximately US$1.33 billion), a 1.5 percent decrease from the previous year. Labor costs were KRW 488.6 billion (US$354.1 million), a 1.7 percent increase from the previous year.

The company reported 49.3 million monthly active users for KakaoTalk in South Korea during the quarter.

The total employee count across Kakao and its 13 key subsidiaries was 16,384 as of June 30, a decrease of 618 from the same period a year earlier.

Capital expenditure was KRW 98.0 billion (US$71.0 million), compared with KRW 170.0 billion in the same quarter last year.

The company holds stakes in affiliated entities, including 46.2% of Kakao Pay, 40.7% of Kakao Games, 57.2% of Kakao Mobility, and 27.2% of Kakao Bank.

(US$ 1 = KRW 1,380)