Kakao Corp.’s profit surprisingly rises according to its 3rd quarter financial statement. It announced that its total sales and operating profit reached 783.2 billion won ($681 million) and 59.1 billion won ($51.4 million).
Kakao, the South Korea telecommunication company, broke its biggest sales in the third quarter. It also broke the record of its operating profit with the highest performance since 2015. Total sales rose 7 percent from the previous quarter and 31 percent year-on-year to 783.2 billion won.
While earnings improved significantly due to the continued growth of paid content. As well as sales growth in the new business sector, led by Kakao Talk’s website.
Kakao also saw sales of Kakao Page and Piccoma, which have new businesses such as Kakao Mobility and Kakao Pay, increase evenly. While Kakao Pay saw an increase in online payment partnerships and increased sales through financial products.
And Kakao Mobility‘s sales from proxy driving served as a boon. As a result, sales of the new business reached 62.3 billion won, up 105 percent from the same period last year.
Operating costs rose 5 percent to 724.1 billion won this quarter, up 27 percent from a year earlier. The impact reflected in the cost of distribution of profits by partners due to growth in content sales and an increase in product cost due to growth in commerce sales.
Operating profit rose 46 percent this quarter. It is 93 percent higher year-on-year up to 59.1 billion won, with an operating profit ratio of 7.5 percent.
Kakao Corp. will further strengthen its profit through Kakao Talk
The company plans to strengthen its global target by utilizing contents such as Kakao Page, Piccoma, and Daum Webtoon. Currently, Kakao’s paid content business is operating in Japan and Indonesia.
And global total transactions are expected to grow 48 percent on-year to 430 billion won by the end of the year. Next year, the company plans to distribute strong story IPs that have been verified in Korea throughout Southeast Asia.
Kakao has been making aggressive moves with its subsidiaries including GroundX in blockchain and Kakao M in the entertainment industry.
