Kakao announced on the 5th that it recorded consolidated revenue of 2.867 trillion won and an operating profit of 240.3 billion won for the third quarter. Revenue increased by 6% year-on-year, while operating profit rose by 7%.
By business segment, platform division revenue in the third quarter was 1.235 trillion won, a 17% increase from the same period last year.
Within the platform division, TalkBiz revenue reached 632.9 billion won, up 13% year-on-year. TalkBiz advertising and subscription revenue stood at 391.5 billion won, an 11% increase from the same period last year. Business message revenue grew by 7%, supported by robust advertiser demand despite the base effect from the livelihood recovery consumption coupon distribution in the third quarter of last year. Talk display advertising revenue increased by 35% year-on-year, driven by expanded advertiser demand and product diversification.
The third-quarter transaction volume for TalkBiz commerce, including Gift and TalkDeal, was 2.3 trillion won, a 13% increase from the same period last year. The number of self-purchase customers and transaction volume in the third quarter increased by 23% and 33%, respectively, compared to the same period last year, and the share of self-purchases in total commerce transaction volume also expanded to around 30%. TalkStore transaction volume rose by 8%, influenced by the diversification of purchase touchpoints such as expanded collaborations with major brands, live commerce, and influencer deals. Consequently, TalkBiz commerce revenue for the third quarter was recorded at 241.3 billion won, a 16% increase from the same period last year.
Other platform revenue, including Mobility and Pay, was 602.1 billion won, a 21% increase from the same period last year. Mobility continued its growth trend as strong performance in new businesses added to the stable revenue base of existing operations. Pay saw significant growth in both revenue and operating profit, driven by balanced growth in financial and payment services, and recorded double-digit operating profit margins for three consecutive quarters.
Content division revenue in the third quarter was 851.7 billion won, a 6% decrease from the same period last year. Music revenue fell by 10% year-on-year to 508.3 billion won due to album releases by major artists and a decline in large-scale concerts, while Story revenue also decreased by 17% to 200.6 billion won. Media revenue was 142.8 billion won, an increase of 49%.
Third-quarter operating profit was 240.3 billion won, up 7% year-on-year, with an operating profit margin of 12%. Operating expenses increased by 6% from the same period last year to 1.8464 trillion won.
CEO Chung Shin-a stated, "I believe it is most important to focus all resources on rapidly unveiling AI services that exceed market expectations," adding, "Going forward, we will expand our AI services with greater speed and meet the expectations of our shareholders through tangible business results and improved corporate valuation."
in TECH
