Kakao Posts Record Earnings... Operating Profit Up 48% Year-on-Year to 732 Billion Won

[Financial News] Kakao posted the strongest results in its history last year.
Kakao announced in a regulatory filing on the 12th that its consolidated revenue for 2025 came to 8.0911 trillion won, with operating profit of 732 billion won on a preliminary basis. These figures represent increases of 3% and 48%, respectively, from a year earlier.
Revenue in the fourth quarter of last year reached 2.1332 trillion won, up 9% from the same period a year earlier. Operating profit jumped 136% to 203.4 billion won.
Kakao explained that fourth-quarter revenue was the highest of any quarter on record, while operating profit exceeded 200 billion won for the second consecutive quarter.
By business segment, fourth-quarter revenue from the platform division totaled 1.2226 trillion won, a 17% increase from a year earlier.
Within the platform division, Talk Biz revenue rose 13% year-on-year to 627.1 billion won. Talk Biz advertising revenue grew 16% from a year earlier to 373.4 billion won. Business message revenue climbed 19% year-on-year, maintaining solid growth, and display advertising also recorded an 18% increase in revenue from the same period a year earlier.
Fourth-quarter revenue from Talk Biz commerce services such as Gift and Talk Deal came to 253.4 billion won.
Total commerce transaction volume in the fourth quarter reached 3 trillion won for the first time on a quarterly basis. In particular, transaction volume for the Gift service grew 14% year-on-year, as the Chuseok holiday effect and expanded year-end promotions maximized peak-season demand. Annual total commerce transaction volume reached 10.6 trillion won.
Revenue from other platform services, including mobility and payment services, rose 30% year-on-year to 523.9 billion won. The mobility business delivered double-digit revenue growth from a year earlier, supported by a stable taxi business and continued expansion in parking and quick-delivery services. Payment services saw balanced growth across all areas, including payments, financial services, and platform services. Revenue in the content division for the fourth quarter stood at 910.6 billion won.
In the fourth quarter of last year, operating expenses increased 3% from a year earlier to 1.9298 trillion won, while operating profit surged 136% to 203.4 billion won, resulting in an operating margin of 10%.
This year, Kakao plans to focus on expanding its core businesses in AI and KakaoTalk. In the first quarter, the company will officially launch its on-device AI service "Kanana in KakaoTalk" on both Android and iOS to broaden user touchpoints, while continuing to develop and enhance its own language models, which are essential for service implementation.
Kakao CEO Jeong Shin-a said, "The results of our structural reforms, which have concentrated the group’s capabilities on core areas, are now clearly reflected in our financial indicators," adding, "We will not only prove our performance through improved results, but also turn expectations for Kakao’s mid- to long-term growth into tangible outcomes."
wongood@fnnews.com Joo Won-gyu Reporter