On the 4th, Kakao Pay announced that it recorded its best quarterly performance ever with revenue of 335.1 billion won, operating profit of 58.6 billion won, and net income attributable to owners of the parent company of 49.6 billion won through its Q2 earnings announcement.
Transaction volume (TPV) on a consolidated basis for the second quarter increased by 20% year-on-year to 54.2 trillion won. By sector, payment services grew by 25% compared to the same period last year. Remittance services rose by 21% during the same period as transactions transferring funds to personal accounts surged due to a sharp increase in stock trading volume. The balance of Kakao Pay Money continued to grow, reaching 2.8157 trillion won.
Consolidated revenue for the second quarter totaled 335.1 billion won, up 40.6% year-on-year, marking the highest quarterly revenue in company history. Growth was broad-based across payments, finance, and platform services. Specifically, payment services grew by 13% year-on-year to 141.4 billion won, driven by steady growth in both online and offline transactions as well as overseas payments.
Financial services recorded a 75% year-on-year increase to 175.2 billion won. Investment and insurance services saw significant growth of 99% and 86%, respectively. For the first time, financial services accounted for 52% of total revenue, surpassing half. Analysts note that this reflects a solid diversification of revenue streams alongside the consistent upward trajectory of the payment business.
Platform service revenue reached 18.5 billion won. Advertising and communication intermediary services continued to drive revenue growth, posting a 44% increase year-on-year.
Consolidated operating profit stood at 58.6 billion won, representing a six-and-a-half-fold increase from the same period last year and marking the highest quarterly performance in company history. Net income attributable to owners of the parent company also reached 49.6 billion won, setting a new record for the quarter. The operating profit margin was 17.5%, and net income margin was 14.8%, maintaining double-digit figures for two consecutive quarters. EBITDA totaled 67.5 billion won.
In the online payment segment, revenue from external merchants rose by 22% year-on-year, increasing their share of total online payment revenue to 65%. This is seen as evidence that user-targeted approaches based on proprietary data and MyData services proved effective. In the offline payment sector, monthly active users reached 6 million, and cumulative transaction volume for the quarter hit 150 million transactions, up 21% and 31% respectively from the same period last year.
In the loan service segment, adoption of "Kakao Pay Score," an alternative credit scoring model, increased significantly. As of Q2, contracts had been signed with 12 financial institutional investors, with plans to expand to over 20 institutions this year. The company aims to meet the needs of adopting institutional investors by developing new evaluation criteria and refining target segments while also exploring synergies with its own services.
Kakao Pay Securities continued its explosive growth trajectory. Total deposited assets and stock and pension assets increased by 279% and 391%, respectively, year-on-year, sustaining triple-digit growth that surpassed the previous quarter. Q2 revenue totaled 121.9 billion won. Cumulative operating profit for the first half of the year reached 63.1 billion won, exceeding last year's full-year performance. Growth was driven by a net inflow of investor funds totaling 4.8 trillion won across domestic and overseas stock markets.
Kakao Pay Insurance achieved revenue of 25.6 billion won, more than doubling from the same period last year, continuing its expansion in scale. New products such as pet insurance and mobile phone insurance maintained strong momentum, while an increase in regular premium new contracts led to a portfolio with reduced seasonal volatility, fostering stable growth. First-year premiums rose by 66% year-on-year, and regular premiums increased by 134% during the same period.
Shin Won-geun, CEO of Kakao Pay, stated, "The establishment of a profitability-focused business model is the result of our continued efforts in data-driven personalized services, strengthening user lock-in, and achieving synergies through the efficient operation of subsidiaries." He added, "Building on our proprietary data and platform capabilities, we will solidify our position as a next-generation financial platform."
in FINANCE
