Kakao Pay Q4 Operating Loss of 22.3 Billion KRW Last Year... First Separate Annual Profit

Subsidiary Slump Leads to Continued Consolidated Loss
Payment Amount Steadily Up... 118 Trillion Won, 19% Increase YoY
"Exploring New Businesses with Reserved Cash and Data"

[Asia Economy Reporter Minwoo Lee] Kakao Pay recorded an operating loss of 22.3 billion KRW on a consolidated basis in the fourth quarter of last year, marking five consecutive quarters of losses since its listing in November 2021. Although the payment amount steadily increased, losses related to subsidiaries appear to have held it back. However, on a separate basis, it achieved a profit for the first time last year.

On the 7th, Kakao Pay announced preliminary results showing consolidated sales of 122.9 billion KRW and an operating loss of 22.3 billion KRW for the fourth quarter of last year. Sales decreased by 3.6% compared to the same period last year, and the operating loss decreased by 22.8%. Financial income increased through the management of reserved cash, turning the net loss from the same period last year into a net profit of 34.1 billion KRW. As a result, last year's consolidated performance was recorded as sales of 521.7 billion KRW and an operating loss of 45.5 billion KRW. Sales increased by 13.7% year-on-year, but the deficit widened by 67.2%. Last year's net profit was estimated at 27.5 billion KRW.

Kakao Pay has not escaped quarterly losses even once since its listing in November 2021. This is interpreted as the impact of sluggish performance of subsidiaries such as Kakao Pay Securities. However, on a separate basis, it recorded an operating profit of 23 million KRW in the fourth quarter of last year, turning to profit compared to the same period last year. With continuous quarterly profits on a separate basis, it recorded an operating profit of 33.2 billion KRW last year, achieving its first annual profit.

The key indicator, transaction amount, steadily increased. The annual transaction amount last year was 118 trillion KRW, up 19% from the previous year. The sales-contributing transaction amount was recorded at 34 trillion KRW, accounting for 29% of the total transaction amount. This is a 26% increase compared to the previous year. The fourth-quarter transaction amount was recorded at 30.9 trillion KRW. Despite the fire at the Pangyo data center in October and November last year, it increased by 17% compared to the same period last year. Specifically, payments and finance each grew by 18%, and other services such as remittances grew by 17%.

Registered users and monthly active users (MAU) also showed an increasing trend. As of the end of last year, registered users numbered 39.44 million, a 5% increase from the previous year. MAU increased by 7% during the same period to 23.02 million. The number of transactions per person was recorded at 101, a 7% increase compared to the previous year. Monthly transaction amount was 447,000 KRW, growing 9.5% year-on-year. The proportion of users who use three or more services on Kakao Pay reached 77%.

Kakao Pay plans to increase profitability by expanding overseas payment locations and exploring various new business opportunities. A Kakao Pay official said, "We are increasing offline payment locations in Japan, Macau, Singapore, France, China, and will launch in new countries this year as well. While advancing comprehensive asset management services, expanding loan products, strengthening direct and indirect investment services, and improving insurance comparison and deposit/intermediary services, we will also seek new business opportunities based on reserved cash and secured data."

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