[Edaily Reporter Lee So-Hyun ] Kakao(035720)reported increases in both revenue and operating profit for the third quarter of this year, driven by growth in its platform businesses, including TalkBiz, mobility, and payments. In contrast, revenue from content services such as Music and Story declined. Kakao is also accelerating the expansion of its artificial intelligence (AI) services, including the launch of a pilot service for “Kanana Space” in December.

Kakao announced on the 5th that its consolidated revenue for the third quarter of this year was 2.0867 trillion won, a 6% increase compared to the same period last year. Operating profit rose 7% to 240.3 billion won. The operating profit margin was 12%.

Operating expenses totaled 1.8464 trillion won, up 6% year-over-year.

Platform Segment Grows 17%… Strong Performance in TalkBiz Advertising and Commerce

By business segment, revenue in the Platform division reached 1.235 trillion won, a 17% increase year-over-year.

TalkBiz revenue rose 13% to 632.9 billion won. Of this, advertising and subscription revenue increased 11% to 391.5 billion won.

Revenue from business messaging rose 7%, as advertiser demand remained strong despite the base effect from the distribution of consumer recovery coupons in the third quarter of last year. Talk Display advertising grew 35%, driven by expanding advertiser demand and product diversification.

Third-quarter transaction volume for TalkBiz Commerce—which includes Gift Giving and TalkDeal—rose 13% to 2.3 trillion won.

In particular, “Gift” recorded its highest-ever monthly transaction volume in September, driven by the Chuseok peak season and an increase in self-purchases. In the third quarter, the number of self-purchasing customers rose 23% year-over-year, while transaction volume increased by 33%. The share of self-purchases in total commerce transaction volume also expanded to approximately 30%.

Transaction volume for Talk Store increased by 8%, driven by collaborations with major brands, live commerce, and the expansion of influencer deals. Consequently, TalkBiz Commerce revenue rose by 16% to 241.3 billion won.

Mobility and Payments Up 21%… Content Down 6%

Revenue from “Other Platform” segments—which include Mobility and Pay—reached 602.1 billion won, a 21% increase compared to the same period last year.

Kakao Mobility saw revenue and operating profit rise as the steady revenue from its existing businesses was complemented by growth in new ventures, while kakaopay saw both revenue and operating profit increase as its financial and payment services grew in tandem. kakaopay recorded a double-digit operating profit margin for the third consecutive quarter.

In contrast, revenue in the content segment decreased by 6% to 851.7 billion won.

Music revenue fell 10% to 508.3 billion won, impacted by the release of albums by major artists and a decline in large-scale concerts. Story revenue also decreased by 17% to 200.6 billion won.

Media revenue rose 49% year-over-year to 142.8 billion won.

“Kanana Space” Pilot in December… Aiming for 10 Million AI Users

Kakao plans to accelerate the expansion of its AI services as the next pillar of its earnings growth. “Kanana Space,” an AI assistant that can be summoned from anywhere within KakaoTalk, will launch a pilot service in December for pre-registered users.

“AI for Everyone” and “Kanvas” are also targeting official launches within the year.

Kakao noted that the number of active users for its existing AI services is steadily increasing and expects to reach 10 million monthly active AI users this year.

Jeong Shin-ah, CEO of Kakao, said, “It is most important to focus all our resources on quickly introducing AI services that exceed market expectations,” adding, “We will expand our AI services at a rapid pace and meet shareholder expectations by delivering tangible business results and enhancing corporate value.”