Kakao Pay posted operating profit of 58.6 billion won in the second quarter, setting another quarterly record. As financial services grew sharply, led by investment and insurance, the share of financial revenue exceeded half for the first time.
According to Kakao Pay on the 4th, second-quarter consolidated revenue was 335.1 billion won, up 40.6 percent from the same period a year earlier.
Operating profit rose 528.2 percent to 58.6 billion won, expanding to 6.3 times the level of a year earlier. Net profit also increased 251.3 percent to 49.6 billion won. Operating margin and net profit margin stood at 17.5 percent and 14.8 percent, respectively, remaining in double digits.
Total transaction value was 54.2 trillion won, up 20 percent year-on-year. Of this, revenue-contributing transaction value, which translates into actual revenue, increased 19 percent to 15.7 trillion won, accounting for 29 percent of the total.
Payment service transaction value grew 25 percent, with online, offline, and overseas segments all expanding. Online payments rose 16 percent on the back of an expanded network of external merchants, while offline payments jumped 58 percent, driven by benefit programs such as “Good Deal.” Overseas payments also increased 21 percent, boosted by inbound travel demand and merchant promotions. Monthly users of offline payments surpassed 6 million, and cumulative quarterly transactions exceeded 150 million.
The financial segment drove the earnings improvement. Financial services revenue rose 75 percent to 175.2 billion won, accounting for 52 percent of total revenue. Investment and insurance service revenue grew 99 percent and 86 percent, respectively. Payment service revenue increased 13 percent to 141.4 billion won, and platform service revenue rose 44 percent to 18.5 billion won.
Subsidiaries also continued to grow. At Kakao Pay Securities, total deposited assets and stock and pension assets increased 279 percent and 391 percent, respectively. Its second-quarter revenue was 121.9 billion won, and its first-half operating profit of 63.1 billion won surpassed its full-year results from last year. Kakao Pay Insurance recorded revenue of 25.6 billion won, driven by growth in pet insurance and mobile phone insurance.
“Kakao Pay Score,” an alternative credit rating model, had signed adoption contracts with 12 financial institutions through the second quarter. Kakao Pay plans to expand the number of adopting institutions to more than 20 within the year and to further segment its assessment items and targets.
“This is the fruit of our continued efforts in data-based customized services, strengthened user lock-in, and synergy from improved subsidiary operational efficiency, which have settled a profitability-focused structure,” said Shin Won-keun, CEO of Kakao Pay. “Based on our independent data and platform capabilities, we will solidify our position as a next-generation financial platform.”