Kakao Q3 Operating Profit 150.3 Billion KRW... 11% Decrease YoY (Update)

[Asia Economy Reporter Kang Nahum] Kakao announced on the 3rd that it recorded consolidated sales of 1.8587 trillion KRW and operating profit of 150.3 billion KRW for the third quarter of this year. Sales increased by 7% compared to the same period last year, while operating profit decreased by 11%. The operating profit margin was 8.1%.

Kakao's platform segment sales for the third quarter amounted to 986.9 billion KRW, a 27% increase compared to the same period last year. Among these, Talk Biz sales continued their growth trend, recording 467.4 billion KRW, a 15% increase from the same period last year. Talk Biz advertising sales, including Biz Board and KakaoTalk Channel, decreased by 4% compared to the previous quarter due to a slowdown in the advertising market and seasonal off-season effects, but grew 18% year-on-year thanks to the expansion of Talk Channel sales.

Talk Biz transaction-type sales, such as Gift and Talk Store, increased by 12% compared to the same period last year. Portal Biz sales decreased by 8% year-on-year to 109.8 billion KRW. Other platform segment sales recorded 409.8 billion KRW, a 61% increase year-on-year, driven by expanded mobility demand and steady growth in transaction amounts linked to Kakao Pay sales.

Content segment sales decreased by 9% year-on-year to 871.8 billion KRW. Story sales recorded 231.3 billion KRW, a 6% increase year-on-year despite reduced promotions for management efficiency. Music sales increased by 27% year-on-year to 250.2 billion KRW, and media sales rose 13% year-on-year to 94.1 billion KRW. Game sales were 296.1 billion KRW, down 36% year-on-year. This reflects the stabilization of initial sales decline following the Taiwanese launch of the mobile game "Odin" and the base effect from last year's "Odin" launch.

Operating expenses increased by 9% year-on-year to 1.7084 trillion KRW.

Meanwhile, Kakao plans to establish and announce fundamental measures related to the fire at the Pangyo data center and is considering various compensations for stakeholders, including users and partners. Additionally, Kakao aims to enhance user experience and service stability, and based on this, prepare mid- to long-term growth engines alongside the evolution of KakaoTalk.

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