Untact-Driven Kakao...Record-Breaking 'Earnings Feast'

[Asia Economy Reporter Buaeri] Kakao has achieved its highest-ever performance, driven by the spread of non-face-to-face (untact) interactions due to the impact of the novel coronavirus infection (COVID-19).

Kakao announced on the 7th that its first-quarter sales amounted to 868.4 billion KRW, an increase of 22.9% compared to the same period last year. Operating profit surged 218.9% to 88.2 billion KRW.

The expansion of untact interactions led to increased sales in the commerce sector and content revenue, while the 'Bizboard (Talkboard)' advertising business launched last year in KakaoTalk chat rooms grew, driving the strong performance.

Yeo Min-soo, co-CEO of Kakao, explained, "As direct face-to-face contact became difficult due to the pandemic, KakaoTalk usage became more active. At the end of February, when COVID-19 peaked, KakaoTalk chat usage time recorded a weekly high, and group chats more than doubled compared to the previous quarter."

By sector, Kakao Commerce transaction volume, including Kakao Gift and Talk Store, increased by 55% year-on-year, content sector sales rose 8% to 426.6 billion KRW, and Talk Biz sales increased 77% to 224.7 billion KRW.

CEO Yeo stated, "Due to the impact of COVID-19, deliveries related to health, hygiene, and indoor activities increased, expanding the use of commerce to delivery gifts as well. KakaoPay's first-quarter transaction volume was 14.3 trillion KRW, up 39% from the previous year."

Kakao expects Kakao Work, targeting the expanding remote work market, to continue driving performance growth. CEO Yeo said, "Due to COVID-19, remote work and flexible work environments are expected to become routine, and we aim to grow as a leading player in this market."

This content was produced with the assistance of AI translation services.