Kakao announced a medium- to long-term shareholder return policy that uses 20% to 35% of annual standalone adjusted free cash flow (FCF) as a source for shareholder returns. Kakao plans to pay dividends of at least 7% and use the remaining funds for stock buybacks and cancellations.
Kakao disclosed the medium- to long-term shareholder return policy, which will apply from this fiscal year until the fiscal year 2026, on the 20th. Unlike the previous policy, it decided to change the calculation method for standalone adjusted FCF by excluding lease liability repayment amounts from the sources for shareholder returns. However, considering the existence of numerous subsidiaries that need to continue investing in core businesses for growth, it has decided to apply a headquarters basis instead of consolidation.
Dividends have been set at a minimum of 7% of standalone adjusted free cash flow. This represents a 2 percentage point increase compared to the previous medium- to long-term shareholder return policy. The new policy will take effect when the results for the year 2024 are finalized in February of next year.
Kakao said, "We will do our utmost to enhance shareholder value through the shareholder return policy while focusing on maximizing corporate value to increase shareholder benefits."