Kakao Pay (377300) Q2 2024 earnings summary

Executive summary

• Q2 2024 TPV rose 20% year-over-year to KRW 41.1 trillion, with revenue TPV up 22% to KRW 12.1 trillion and revenue up 25% to KRW 185.5 billion; net profit reached KRW 0.6 billion, and EBITDA turned positive at KRW 1.8 billion.

• MAU reached 24.65 million, with 101 transactions per user; core business transactions per user rose 11% year-over-year.

• Financial income contributed KRW 15.8 billion, supporting profitability improvements.

• Total consolidated revenue for 2Q24 reached KRW 2,004,898 million, up 4.2% year-over-year, with operating profit up 18.5% and net profit up 28.8%.

Financial highlights

• Digital payment TPV increased 23% year-over-year, and digital finance TPV rose 18%; stock trading TPV surged 74% year-over-year.

• Digital finance revenue exceeded KRW 50 billion for the first time, up 59.6% year-over-year, now 30% of total revenue.

• Operating expense increased 19.4% year-over-year to KRW 192.8 billion, but revenue growth outpaced expense growth.

• Consolidated operating loss narrowed to KRW 7.3 billion; standalone net profit was KRW 19.3 billion, reducing accumulated deficit to about KRW 5 billion.

• Platform segment revenue in 2Q24 was KRW 955,288 million, up 7.0% year-over-year; content segment revenue was KRW 1,049,611 million, up 6.3%.

Outlook and guidance

• Plans to improve mid- to long-term profit structure through cost efficiency and sustained top-line growth.

• Aims to increase non-payment business, including financial services, to over 50% of revenue long-term.

• Insurance business targets 10x growth in three years, with share of insurance in financial services potentially rising to 30%.

• Offline payment users expected to surpass 5 million in 2024, driven by Samsung Pay and Zero Pay integration.

• MyData subscribers projected to reach 20 million in 1H25, supporting hyper-personalized financial services.