Kakao, third quarter operating profit of 240.3 billion won... Platform growth effect (comprehensive)

Kakao [035720] announced on the 5th that its operating profit in the third quarter of this year on a consolidated basis was 240.3 billion won, an increase of 7.4% compared to the same period last year.

Sales increased 6.3% to KRW 2.0867 trillion, and operating profit margin was approximately 11.5%.

Kakao's quarterly operating profit exceeded 200 billion won for six consecutive quarters.

Sales in the platform division grew by double digits, driving performance.

By business, platform sector sales amounted to KRW 1.235 trillion, an increase of 16.5% compared to the same period last year.

Among these, Talk Biz sales, including KakaoTalk advertising and commerce, increased 12.7% to 632.9 billion won.

Talkbiz advertising and subscription sales rose 11% to 391.5 billion won.

Business message sales grew by 7% and Talk display advertising sales grew by 35%.

Talkbiz commerce transaction volume, including gifting and talk deals, increased 13% to 2.3 trillion won, and commerce sales increased 16% to 241.3 billion won.

In particular, gift giving recorded the highest monthly transaction volume ever in September, thanks to the effects of the Chuseok peak season and the expansion of self-purchasing.

In the third quarter, the number of self-purchasing customers and transaction amount increased by 23% and 33%, respectively. The proportion of self-purchase in total commerce transactions has expanded to about 30%.

Other platform sales, including mobility and pay, increased 20.9% to 602.1 billion won.

On the other hand, sales in the content division decreased by 5.6% to KRW 851.7 billion.

Music sales decreased by 10.1% to 508.3 billion won due to album releases by major artists and a decrease in large-scale performances.

Story sales also decreased by 16.9% to 206 billion won. Media sales increased 49.1% to 142.8 billion won.

Operating expenses amounted to 1.8464 trillion won, an increase of approximately 6% compared to the same period last year.

Kakao plans to speed up the expansion of artificial intelligence (AI) services.

Next month, we will begin a pilot service of 'Canana Space', an AI assistant that can be called and used on KakaoTalk, for advance applicants.

‘Everyone’s AI’ and ‘Kanvas’ are also scheduled to be officially released within the year.

Kakao expected to reach 10 million monthly active AI users within the year, thanks to the increase in active users of existing AI services.

Kakao CEO Chung Shin-ah said, "It is most important to focus all resources on quickly introducing AI services that exceed market expectations. Going forward, we will expand AI services more quickly and meet the expectations of shareholders through actual business performance and improvement of corporate value."