[Edaily Reporter Lee So-Hyun ] Kakao(035720)has reaffirmed its goals set at the beginning of the year to increase consolidated revenue by more than 10% this year and achieve an operating profit margin of 10%, despite delays in the recovery of its content business. This decision is based on the expectation that growth in Kakao’s core and platform businesses will continue, and that its advertising business will maintain double-digit growth in the fourth quarter.

Shin Jong-hwan, Kakao’s Chief Financial Officer (CFO), stated during the third-quarter earnings conference call on the 5th, “As growth in Kakao’s standalone and platform segments continues, we expect that the guidance set at the beginning of the year—consolidated revenue growth of at least 10% and an operating profit margin of 10%—is fully achievable.”

Kakao expects the growth momentum in its advertising business to continue in the fourth quarter. Although display advertising faces pressure from a high base last year, the company anticipates that the advertising business will achieve year-over-year growth of more than 10 percent as the revenue growth rate for business messaging picks up again.

On the other hand, the commerce segment is expected to face a negative base effect due to last year’s Chuseok holiday falling in the fourth quarter. This year’s Chuseok was reflected in the third quarter, boosting third-quarter performance—including the “Gift-Sending” service, which recorded its highest-ever monthly transaction volume in September.

The recovery of the content business is also lagging somewhat. CFO Shin explained, “While growth in the platform segment remains robust, the recovery in the content segment’s performance is somewhat delayed,” adding, “Currently, the content segment is focusing on defending profitability rather than revenue growth, so we expect a trend similar to the third quarter in the fourth quarter, and improvements in profitability will also be limited.”

He predicted that Kakao’s core profitability would continue to improve. Kakao’s standalone operating profit posted double-digit year-over-year growth in all three quarters of this year. Third-quarter standalone operating profit reached 117.8 billion won, a 17% increase year-over-year, and the operating profit margin improved by approximately 1 percentage point to 17%.

On a consolidated basis, third-quarter revenue totaled 2.0867 trillion won, up 6% year-over-year, while operating profit rose 7% to 240.3 billion won. Platform revenue drove growth, rising 17% to 1.235 trillion won, but content revenue fell 6% to 851.7 billion won.

CFO Shin stated, “Given that Kakao’s standalone operating profit has maintained double-digit year-over-year growth for three consecutive quarters this year, we expect this upward trend to continue.”

Meanwhile, on a consolidated basis, Kakao reported third-quarter revenue of 2.0867 trillion won and operating profit of 240.3 billion won. These figures represent year-over-year increases of 6.3% and 7.4%, respectively. The operating profit margin stood at 11.5%. Kakao’s quarterly operating profit has exceeded 200 billion won for six consecutive quarters since the second quarter of last year. Revenue from the Platform segment rose 17% to 1.235 trillion won, driving growth, while revenue from the Content segment fell 6% to 851.7 billion won.