Kakao Reports Record 3Q Operating Profit of 168.2 Billion Won (Update)

[Asia Economy Reporter Kang Nahum] Kakao announced on the 4th that its sales for the third quarter of this year reached 1.7408 trillion KRW, and operating profit was 168.2 billion KRW. This represents an increase of 58% and 40%, respectively, compared to the same period last year. Both sales and operating profit are the highest ever recorded on a quarterly basis. The operating profit margin was 9.7%.

Platform segment sales were 778.7 billion KRW, up 2% from the previous quarter and 35% from the same period last year. TalkBiz sales increased by 4% quarter-on-quarter and 38% year-on-year to 404.9 billion KRW. Stable growth in advertising revenues such as BizBoard and KakaoTalk Channel, along with transaction-based revenues from TalkStore and Gift, drove the growth.

PortalBiz sales decreased by 5% quarter-on-quarter and 2% year-on-year to 119.2 billion KRW. Other platform segment sales, driven by the expansion of KakaoPay’s payment and financial services, increased by 3% quarter-on-quarter and 54% year-on-year to 254.7 billion KRW.

Content segment sales rose 63% quarter-on-quarter and 84% year-on-year to 962.1 billion KRW. Story sales grew 17% quarter-on-quarter and 47% year-on-year to 218.7 billion KRW, supported by steady growth in platform and intellectual property (IP) distribution transaction volume, as well as the inclusion of Tapas and Radish.

Music sales achieved 197.1 billion KRW, up 5% quarter-on-quarter and 8% year-on-year, while media sales fell 5% quarter-on-quarter but increased 102% year-on-year to 83.1 billion KRW. Game sales reached 463.1 billion KRW, surging 260% quarter-on-quarter and 208% year-on-year, driven by the record-breaking performance of the mobile game “Odin: Valhalla Rising,” which ranked first in both major markets.

Operating expenses for the third quarter of 2021 increased 32% quarter-on-quarter and 60% year-on-year to 1.5726 trillion KRW, influenced by increased investments related to the expansion of global business.

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