Kakao Pay posts record Q1 operating profit, extends streak of profitability

Kakao Pay said it posted its highest-ever quarterly results in the first quarter, driven by growth across its payments, financial services and platform businesses.

In a regulatory filing on Tuesday, the company reported consolidated revenue of 300.3 billion won and operating profit of 32.2 billion won for the January-March period. That was up 41.7% and 630.9%, respectively, from a year earlier, both record highs. Operating margin rose to 10.7%, and net profit margin reached 11.6%, both in double digits.

Transaction volume also increased. Consolidated transaction value rose 15% from a year earlier to 50.9 trillion won. Revenue-contributing transaction value climbed 15% to 14.6 trillion won, holding at about 29% of total transaction value. The balance of Kakao Pay Money top-ups continued to rise, reaching 2.5122 trillion won. Remittance transaction value also grew 15% from a year earlier as stock trading expanded.

Financial services led the gains. Revenue from the segment jumped 82% to 145.9 billion won, helped by a 137% increase in investment-service revenue and a 78% rise in insurance-service revenue. The segment accounted for 49% of total revenue, as the company broadened earnings beyond payments.

Payments revenue rose 13.3% to 138.4 billion won. Online payments at merchants outside the Kakao Group increased 24%, supporting revenue growth, the company said, citing data-driven solutions aimed at boosting partner sales. Overseas payment transaction value increased 20% from a year earlier.

Subsidiaries also contributed. Kakao Pay Insurance posted first-quarter revenue of 24.3 billion won, up 85% from a year earlier, while regular premium payments rose 157%. Kakao Pay Securities reported quarterly revenue of 100.1 billion won and operating profit of 23.6 billion won, both record highs.

Chief Executive Shin Won-geun said the company’s data-driven business model and new growth engines have moved onto a firmer track. “We will keep our growth momentum solid so that technological innovation can translate into higher corporate value,” he said.