Seoul: Kakao Corp., the operator of South Korea's leading mobile messenger, reported a significant increase in its third-quarter net income, which soared 113 percent year-on-year due to a base effect. Net profit for the July-September period amounted to 78.5 billion won (US$56 million), a substantial rise from 36.8 billion won in the same period last year, as detailed in a regulatory filing released by the company.According to Yonhap News Agency, Kakao's operating income saw a modest increase of 5 percent on-year, reaching 130.5 billion won, while its sales experienced a decline of 4.5 percent, totaling 1.92 trillion won. The earnings, however, did not meet market expectations, with analysts having estimated an average net profit of 94.6 billion won, based on a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.The company attributed the rise in net profit to the base effect stemming from the high operating costs recorded in the third quarter of the previous year, as well as a recent divestiture of some of its subsidiaries. Despite the increase in net profit, Kakao's overall sales dropped, primarily due to underperformance in its content business unit.Revenue from the content division fell 14 percent on-year to 977.9 billion won, with declines observed across games, music, and webtoon sales. Conversely, the platform business unit experienced a 7 percent increase in sales, totaling 943.5 billion won, driven by increased revenue from its flagship mobile messenger, KakaoTalk.Breaking it down further, KakaoTalk's advertisement revenue grew by 6 percent to 507.3 billion won, while the e-commerce feature on the messenger saw an 8 percent rise in revenue, reaching 215.1 billion won. Additionally, revenue from other platforms, including Kakao Pay and Kakao Mobility, expanded by 13 percent on-year, amounting to 359.8 billion won.Looking ahead, Kakao announced plans to launch its new artificial intelligence (AI) service, Kanana, along with other related services, in the upcoming year.
- October 12, 2026
