Kakaopay Q2 Profit Soars: Fintech Giant's Digital Finance Surge

Seoul, South Korea—Kakaopay Corp (377300. KS) reported a net profit of KRW 626 million (US$455,000) in the second quarter, up from a year earlier loss, as its financial services businesses experienced rapid growth.

Revenue rose 24.6% year-on-year to KRW 185.5 billion (US$134.9 million), driven by a 59.6% surge in digital finance revenue to KRW 55.2 billion (US$40.1 million).

The company's total payment volume increased 20% to KRW 41.1 trillion (US$29.9 billion), with revenue-generating transactions growing 22% to account for 30% of total volume.

Operating expenses increased 19.4% to KRW 192.8 billion (US$140.2 million), resulting in an operating loss of KRW 7.3 billion (US$5.3 million), narrowed from a KRW 12.6 billion loss a year earlier.

The company's marketing expenses also increased 25.2% quarter-on-quarter to KRW 16.7 billion (US$12.1 million) as it expanded its offline presence.

The company expects to surpass 5 million offline payment users by the end of 2024, up from 4 million. 

It also aims to reach 20 million MyData users, who provide personal financial data in exchange for customized services, by the first half of 2025.

Key Financial and Business Metrics:

• Revenue: KRW 185.5 billion (US$134.9 million), +24.6% YoY
• Digital Payment: KRW 121.4 billion (US$88.3 million), +12.3% YoY
• Digital Finance: KRW 55.2 billion (US$40.1 million), +59.6% YoY
• Others: KRW 8.9 billion (US$6.5 million), +44.0% YoY

Operating Loss: KRW 7.3 billion (US$5.3 million), improved from KRW 12.6 billion loss in Q2 2023

Net Income: KRW 626 million (US$455,000), compared to KRW 6.2 billion loss in Q2 2023

Total Payment Volume (TPV): KRW 41.1 trillion (US$29.9 billion), +20% YoY

• Revenue TPV: KRW 12.1 trillion (US$8.8 billion), +22% YoY, 30% of total TPV

Monthly Active Users (MAU): 24.65 million, +2% YoY

Transactions per User: 101 (-3% YoY), but 87 (+11% YoY) for core services

Domestic Merchants: 1.07 million, +17% YoY

MyData Users: 16.5 million (as of July 2024), targeting 20 million by H1 2025

Kakaopay Securities:

• Deposit Assets: KRW 3 trillion (US$2.2 billion), +65% YoY
• Quarterly Trading Volume: KRW 11.7 trillion (US$8.5 billion), +74% YoY
• Quarterly Trading Transactions: 24 million, +175% YoY

Kakaopay Insurance:

• Quarterly Revenue: KRW 8.9 billion (US$6.5 million), +2,793% YoY