Kakao Pay disclosed on the 4th that operating profit in the third quarter swung to a profit of 15.8 billion won from a year earlier. After turning a profit in the first quarter of this year, it has grown steadily and, for the first time this quarter, surpassed triple digits.
Third-quarter transaction value was 47 trillion won, up 12% from a year earlier. Revenue-contributing transaction value came to 13.4 trillion won, up 8% over the same period. The Kakao Pay Money recharge balance was 2.0961 trillion won, surpassing 2 trillion won for the first time.
Third-quarter consolidation revenue was 238.4 billion won, up 28% from a year earlier. Following the previous quarter, strong performance in financial and platform services drove revenue growth. The operating margin was 6.6%. Net income and EBITDA (earnings before depreciation and amortization) were 19.1 billion won and 24.1 billion won, respectively.
By business, financial services revenue was 94.7 billion won. It grew sharply by 72% year over year. In particular, as stock transaction value rose significantly, investment services revenue increased 155.4%, and insurance services revenue also grew 72.2%, adding momentum.
Platform services revenue was 14 billion won. Advertising and card recommendation services continued to build revenue, rising 69.2% from a year earlier. Payment services revenue was 129.7 billion won, up 5.5% year over year. While revenue increased across all payment areas, offline and overseas payments, which have significant room to expand, each posted double-digit growth and led the overall increase.
Consolidation operating expenses were 222.5 billion won. Operating expenses increased due to business expansion and revenue growth, rising 14.9% from a year earlier, but fell 2.8% from the previous quarter amid a drive for cost efficiency.
Among subsidiaries, Kakao Pay Securities saw triple-digit increases in key indicators including third-quarter stock transaction value and count, monthly transacting customers, and customer assets on deposit, and posted operating profit of 15.6 billion won. Kakao Pay Insurance sharply increased recurring (periodic) premiums, the foundation of revenue growth, to five times the level of a year earlier. Total written premiums in the third quarter were 16.4 billion won, up 38% year over year, accelerating performance improvement to enter the profit zone.
Chief Executive Shin Won-keun of Kakao Pay said, "With both payment and financial services posting strong results, and with the expansion of 'data-driven business' and 'platform business,' which are among this year's core strategies, translating into outcomes, we believe this will serve as the foundation for charting next year's direction," adding, "With Kakao Pay's differentiated technology, we will create a better future where all everyday finance is possible with Kakao Pay alone."