South Korean messaging app provider Kakao reported strong profit and revenue growth in the second quarter of 2019, as its efforts to diversify beyond its saturated core business started to pay off.
Net profit grew 38 per cent year-on-year to KRW31 billion ($25.5 million). Consolidated revenue increased 24 per cent to KRW733 billion, driven by a 30 per cent increase from its platform business, which covers advertising and new businesses including its tax-booking unit Kakao T.
New business revenue more than doubled from a year earlier to KRW51 billion, while advertising sales rose 22 per cent to KRW276 billion. Content revenue increased 20 per cent KRW406 billion.
In a filing to the Korea Exchange, the company said its profit expansion is not centred around Kakao Talk, adding: “We believe we have established a system where all business departments can improve their performance,” The Korea Times reported.
Global monthly active users (MAUs) of Kakao Talk grew just 1.5 per cent year-on-year to 50.9 million at end-June, with MAUs in its key South Korean market rising 1.9 per cent to 44.4 million.Subscribe to our daily newsletter Back