Kakao (CEO Hong Eun-taek) reported that its sales in the third quarter of 2022 recorded KRW 1.8587 trillion, up 2% from the previous quarter and 7% from the same period last year, based on K-IFRS (Korea International Financial Reporting Standards). Operating profit decreased by 12% compared to the previous quarter and 11% compared to the same period last year, to KRW 150.3 billion, with an operating profit margin of 8.1%.
Kakao’s platform division sales in the third quarter of 2022 were recorded at KRW 986.9 billion, up 6% from the previous quarter and 27% from the same period last year.
Talk Biz sales continued to grow, recording KRW 467.4 billion, an increase of 3% compared to the previous quarter and 15% compared to the same period last year. Among these, Talk Biz advertising sales, such as Bizboard and KakaoTalk channels, decreased by 4% compared to the previous quarter due to the slowing growth of the advertising market and the seasonal off-season, but grew by 18% compared to the same period last year due to the expansion of Talk channel sales.
Talk Biz transaction-type sales, such as gifting and Talk Store, increased by 14% compared to the previous quarter and 12% compared to the same period last year. Portal Biz sales amounted to KRW 109.8 billion, a 7% increase compared to the previous quarter and an 8% decrease compared to the same period last year. Sales in other areas of the platform recorded KRW 409.8 billion, up 9% compared to the previous quarter and 61% compared to the same period last year, due to the expansion of mobile demand and the steady increase in Kakao Pay sales-linked transaction amount.
Content sector sales in the third quarter of 2022 amounted to KRW 871.8 billion, down 2% from the previous quarter and 9% from the same period last year.
Story sales recorded KRW 231.3 billion, up 2% from the previous quarter and 6% from the same period last year, despite reductions in promotions to improve management efficiency. Music sales were KRW 250.2 billion, up 20% from the previous quarter and 27% from the same period last year, while media sales were KRW 94.1 billion, down 20% from the previous quarter and up 13% from the same period last year. Game sales amounted to KRW 296.1 billion, down 12% from the previous quarter and 36% from the same period last year. This is a result of the downward stabilization of sales of the mobile game ‘Odin’ during its initial launch in Taiwan, as well as the base effect from the launch of ‘Odin’ last year.
Operating expenses in the third quarter of 2022 are KRW 1.7084 trillion, an increase of 3% compared to the previous quarter and 9% compared to the same period last year.
Meanwhile, Kakao plans to establish and announce fundamental measures regarding the fire at the Pangyo Data Center so as not to neglect its responsibilities as a service used by the majority of the public, and to review compensation for stakeholders, including users and partners, from various angles.
In addition, in a situation where the business environment continues to be difficult, such as the global recession, the company plans to advance user usability and service stability, and based on this, provide a mid- to long-term growth engine along with the evolution of KakaoTalk.
Source: Pangyo Techno Valley Official Newsroom
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