Kakao Reports 2022 Annual Revenue of KRW 7.071 Trillion.

Kakao (KRX: 035720) reported 2022 annual revenue of KRW 7.071 trillion, up 16% year-on-year based on K-IFRS.

Operating profit for the year declined 2% to KRW 580.5 billion, with an operating margin of 8.2%.

Consolidated revenue for the fourth quarter of 2022 was KRW 1.774 trillion, down 5% from the previous quarter but in line with the same period last year.

Operating profit was KRW 100.4 billion.

Platform revenue decreased 4% year-on-year to KRW 966.8 billion in Q4 2022, while Talk Biz revenue increased 9% to KRW 501.1 billion, driven by news advertising and gift delivery products growth.

Portal Biz revenue decreased 25% year-on-year to KRW 97.9 billion, and revenue from other platforms fell 13% year-on-year to KRW 348.8 billion.

Content revenue increased 3% year-on-year to KRW 807.6 billion.

Story revenue increased 5% to KRW 216.6 billion, while music revenue increased 14% to KRW 230.5 billion.

Media revenue increased 39% to KRW 124.8 billion. Gaming revenue declined 17% to KRW 230.8 billion due to a pause in new game releases and off-season effects.

Operating expenses were KRW 1.674 billion in Q4 2022, down 2% from last year's previous quarter and the same period.

For 2022, operating expenses increased by 18% to KRW 6.526 trillion.

Kakao plans to focus on providing value to users, such as ease of use and convenience, in a challenging market environment.

The company aims to consolidate its business model and strengthen its internal strength.

The company plans to expand KakaoTalk by offering communication formats tailored to relationships, focusing on AI and healthcare to discover new growth drivers, and strengthening its global content business.