Kakao Pay 3Q Operating Loss of 9.5 Billion KRW... Operating Deficit Narrows for 3 Consecutive Quarters

Impact of Subsidiary Investment Costs... Continued Profitability on a Separate Basis

Kakao Pay recorded an operating loss of 9.5 billion KRW in the third quarter of this year. The deficit has been narrowing compared to both the previous quarter and the same period last year. On a separate basis, it maintained profitability for the third consecutive quarter. However, the consolidated net loss nearly doubled compared to the same period last year.

On the 6th, Kakao Pay announced preliminary results for the third quarter of this year, reporting consolidated revenue of 158.9 billion KRW and an operating loss of 9.5 billion KRW. Revenue increased by 12.4% year-on-year, while the deficit decreased by 1.7%. Since recording a loss of 13 billion KRW in the first quarter of this year, the deficit has been shrinking each quarter. However, the net loss was 8.2 billion KRW, up 75.8% compared to the same period last year and 31.8% higher than the previous quarter.

In terms of detailed revenue indicators, double-digit growth was recorded across all service areas including online and offline payments and overseas payments. Payment service revenue was 113.5 billion KRW, up 17.2% year-on-year and 5.0% quarter-on-quarter.

Financial service revenue grew by 0.7% year-on-year and 9.0% quarter-on-quarter to 37.7 billion KRW. This growth was attributed to the expansion of Kakao Pay Securities’ revenue and increased sales of overseas travel insurance by Kakao Pay Insurance. Other service revenue rose 9.3% year-on-year and 25.3% quarter-on-quarter to 7.7 billion KRW.

Operating expenses also showed double-digit growth, totaling 168.4 billion KRW, an 11.5% increase year-on-year. As payment revenue increased, commission fees rose by 18.2% during the same period, and amortization expenses increased by 23.7% due to higher subsidiary costs from investments in new businesses such as securities and insurance.

Total Payment Volume (TPV) reached approximately 36.2 trillion KRW, an 18% increase year-on-year. The recent rise in foreign tourists’ offline overseas payments and domestic users’ offline payments positively contributed to this growth. Notably, the key profitability indicator, revenue-contributing transaction volume, increased by 15% during the same period to 10.5 trillion KRW. This is the first time revenue-contributing transaction volume has surpassed 10 trillion KRW. Overseas payment transaction volume increased by 1.8 times year-on-year for two consecutive quarters.

The quarterly Monthly Active Users (MAU) stood at 22.92 million, a 2.6% decrease year-on-year. This was attributed to a temporary drop in electronic document users following the payment of property tax in June. The number of transactions per user increased by 4% to 105 during the same period. The number of merchants also steadily increased, reaching 960,000 in the third quarter, a 20% rise year-on-year. Although the MAU was 22.92 million, the MAU for key services such as payments, remittances, asset management, and the Kakao Pay app itself increased compared to the previous quarter, with transactions per user also rising 4% year-on-year to 105.

Meanwhile, on a separate basis, Kakao Pay recorded revenue of 142 billion KRW and an operating profit of 12 billion KRW, marking profitability. These figures represent increases of 15.6% and 18.0%, respectively, compared to the third quarter of last year. Notably, profitability has continued for three consecutive quarters since the first quarter of this year.

Deposited assets at subsidiary Kakao Pay Securities surpassed 2 trillion KRW for the first time in August this year, growing approximately threefold compared to October last year. Transaction volume reached a record high of 9.7 trillion KRW, a 44% increase from the previous quarter. Considering that the total stock market trading volume increased by 12% during the same period, this represents a steep growth trajectory. Kakao Pay Insurance’s overseas travel insurance exceeded 200,000 cumulative subscribers since its launch in June.

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