-4th quarter of 2020 sales KRW 1.2351 trillion, operating profit KRW 149.8 billion
-We plan to strengthen ESG management in earnest starting this year.
Kakao (Co-CEOs Yeo Min-su and Jo Soo-yong) announced that its annual sales in 2020 recorded KRW 4.1567 trillion, a 35% increase from the previous year, based on K-IFRS (Korea International Financial Reporting Standards). Annual operating profit increased 121% from the previous year to KRW 456 billion, with an operating profit margin of 11%.
Consolidated sales in the fourth quarter of 2020 were KRW 1,235.1 billion, up 12% from the previous quarter and 46% from the same period last year, and operating profit was KRW 149.8 billion, up 25% from the previous quarter and 88% from the same period last year.
Kakao’s platform division sales in the fourth quarter of 2020 were recorded at KRW 657 billion, up 19% from the previous quarter and 48% from the same period last year.
Talk Biz sales amounted to KRW 360.3 billion, up 27% from the previous quarter and 63% from the same period last year. Portal Biz sales recorded KRW 122.7 billion, a 1% increase compared to the previous quarter and a 9% decrease compared to the same period last year due to a decrease in search advertising sales due to the impact of COVID-19. Sales in the new business division increased by 17% compared to the previous quarter and 97% compared to the same period last year to KRW 174 billion due to increased sales of Kakao Mobility’s taxi platform business and expansion of Kakao Pay’s payment transaction volume and financial services.
Sales in the content division recorded KRW 578.1 billion, a 6% increase compared to the previous quarter and a 43% increase compared to the same period last year. Paid content sales increased by 10% compared to the previous quarter, and recorded KRW 163.6 billion, up 233% compared to the same period last year due to the base effect from Kakao Japan’s application of K-IFRS. Game content sales decreased by 6% compared to the previous quarter and increased by 33% compared to the same period last year, reaching KRW 140.8 billion. Music content sales recorded 155.1 billion won, similar to the previous quarter. IP business other sales increased by 30% compared to the previous quarter and 25% compared to the same period last year to KRW 118.6 billion due to increased sales of video content such as Kakao M’s dramas and original content and strong music distribution.
Annual operating expenses in 2020 were KRW 3.7 trillion, a 29% increase from the previous year. Consolidated operating expenses in the fourth quarter increased by 11% compared to the previous quarter and 41% compared to the same period last year to KRW 1.0852 trillion, which was influenced by the incorporation of consolidated subsidiaries, increased labor costs due to the hiring of new development personnel, and increased marketing costs.
Meanwhile, Kakao will begin strengthening ESG management in earnest starting this year. Last January, the ESG Committee was newly established, and internally, 12 major action areas were determined and approximately 80 tasks are in progress. We also plan to publish a sustainability report containing details of ESG activities in the first half of this year.
* PangyoTechnoValley special reporting group: Editor-in-Chief Ji-Hoon Choi, Director Jang-Geun Yoo, Reporter Eun-Sil Lee, Reporter Seong-Sook Lee
Source: Pangyo Techno Valley Official Newsroom
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