Kakao Soars... Quarterly Revenue Surpasses 1 Trillion Won for the First Time (Comprehensive)

[Asia Economy Reporter Bu Aeri] Kakao has achieved a historic milestone by surpassing 1 trillion KRW in quarterly revenue and 100 billion KRW in operating profit for the first time ever. This success is attributed to the rapid growth of KakaoTalk-based advertising, e-commerce business, and global paid content businesses such as webtoons. New businesses like mobility and payment services also contributed to the improved performance.

"Kakao's Unique Business Model Succeeds Amid the Pandemic"

Josuyong (left) and Yeominsu, Co-CEOs of Kakao

Kakao announced on the 5th that its Q3 revenue reached 1.1004 trillion KRW, and operating profit was 120.2 billion KRW. These figures represent increases of 41% and 103% respectively compared to the same period last year, marking the highest quarterly performance in the company's history. Kakao has maintained the highest operating profit for seven consecutive quarters.

Yeo Min-soo, co-CEO of Kakao, said during the earnings conference call, "For the first time in history, we have achieved quarterly revenue exceeding 1 trillion KRW and operating profit over 100 billion KRW. This result was created by Kakao's unique business model that quickly understands the flow of digital trends and innovatively expands services and products, even amid the unprecedented crisis of the pandemic."

Kakao's strong performance was driven by advertising and commerce businesses based on KakaoTalk and its global content business. Kakao's revenue is divided into two segments: 'Platform' and 'Content.' Platform segment revenue, which includes Talk Biz, portal, and new businesses, increased by 58% year-over-year to 554.4 billion KRW. Content segment revenue grew by 26% to 546 billion KRW compared to a year ago.

Advertising, Shopping, and Content Soared

The growth of KakaoTalk-based advertising and commerce businesses stood out. Talk Biz revenue, which includes KakaoTalk ads such as 'Bizboard,' 'Gift,' and commerce parts like 'Talk Store,' reached 284.4 billion KRW, a 75% increase from the same period last year.

Kakao Commerce's total transaction volume in Q3 showed strong growth, increasing by 68% year-over-year. Particularly, the advertising segment 'Bizboard' led the strong performance. Co-CEO Yeo said, "With over 12,000 Kakao Bizboard advertisers, we set a new monthly sales record. In December, we expect to achieve a daily average revenue of 1 billion KRW."

Revenue from new business segments reached 148.8 billion KRW, showing 139% growth driven by the expansion of Kakao Mobility's taxi platform business and increased transaction volume in Kakao Pay. Kakao Pay's Q3 transaction volume grew 38% year-over-year to 17.9 trillion KRW. The affiliated taxi service 'Kakao T Blue' also contributed to new business growth by expanding its fleet to 13,000 vehicles.

The growth of content businesses such as webtoons also played a role in improving performance. Paid content revenue grew 61% year-over-year to 148.4 billion KRW, driven by accelerated global transaction growth centered on Japan. Kakao Japan's webtoon platform 'Piccoma' has been setting new records for monthly active users and daily transaction volume, ranking first in manga app revenue in Japan since July.

Game content revenue reached 150.4 billion KRW, a 52% increase year-over-year, fueled by the success of the new mobile game 'Guardian Tales.' Music content revenue increased by 3% to 155.7 billion KRW compared to the previous year. Intellectual property (IP) business and other revenues rose 2% year-over-year to 91.5 billion KRW.

Having achieved record-breaking results, Kakao also emphasized its future corporate value. Co-CEO Yeo stated, "In the face of the COVID-19 crisis, our society is striving to wisely maintain daily life by utilizing digital technology. Kakao aims to contribute to helping society recognize the new normal changed by COVID-19 and to explore ways to cope with potential future crises and changes."

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