Kakao

Kakao recorded revenue of KRW 1.9421 trillion and operating profit of KRW 211.4 billion in the first quarter of 2026. First-quarter revenue·operating profit were the highest ever for a first quarter, and the company achieved qualitative growth by strengthening its fundamental competitiveness. It is also expected to begin a transition to an agentic AI platform, leveraging the structural growth trajectory of its existing businesses.

Kakao (CEO Jeong Shin-a) said that on a consolidated K-IFRS (Korean-adopted International Financial Reporting Standards) basis, first-quarter 2026 revenue rose 11% year-on-year to KRW 1.9421 trillion, and operating profit increased 66% to KRW 211.4 billion. Both revenue and operating profit were record highs for a first quarter.

By business area, first-quarter Platform segment revenue totaled KRW 1.1827 trillion, up 16% year-on-year.

Within the Platform segment, Talk Biz revenue rose 9% year-on-year to KRW 608.6 billion. Talk Biz advertising revenue was KRW 338.4 billion, up 16% year-on-year. As demand expanded, led by financial advertisers, the total volume of messages sent increased, and diversification of messaging products broadened advertiser use cases, driving a 27% year-on-year increase in business messaging revenue. Display advertising also posted 10% year-on-year revenue growth.

The integrated gross merchandise value (GMV) for Talk Biz commerce, including Gift and Talk Deal, was KRW 2.9 trillion in the first quarter, up 10% year-on-year. This was the result of strengthening the product lineup in high-demand categories such as fresh foods and home appliances, and further enhancing personalized benefits by user. In particular, thanks to the ‘Kakao Shopping Festa’ held in March, Talk Store GMV grew 18% year-on-year, and self-purchase GMV within Gift rose 53%. Commerce revenue for the first quarter was KRW 270.0 billion, up 1% year-on-year.

Kakao

Other Platform revenue, which includes Mobility and Pay, was KRW 506.5 billion, up 30% year-on-year. Mobility achieved double-digit year-on-year revenue growth for the third consecutive quarter, driven by taxis, parking, last-mile logistics, and advertising. Pay surpassed KRW 300.0 billion in quarterly revenue for the first time, supported by growth across services including payments, financial, and platform services.

Content segment first-quarter revenue was KRW 759.4 billion, up 5% year-on-year. Music revenue increased 11% to KRW 484.6 billion, and Media revenue rose 23% to KRW 92.4 billion. Story revenue came in at KRW 182.4 billion.

First-quarter operating expenses were KRW 1.7307 trillion, up 7% year-on-year. Accordingly, operating profit increased 66% to KRW 211.4 billion, with an operating margin of 11%. Although the first quarter is typically a seasonal off-peak period with relatively low profitability, this quarter saw a significant improvement as efficiency efforts centered on core businesses were reflected in results.

Kakao plans to accelerate its transition to an agentic AI platform this year. Kakao CEO Jeong Shin-a said, “It is encouraging that in the first quarter we achieved qualitative growth by strengthening our fundamental competitiveness,” and added, “Leveraging the structural growth trend of our existing businesses, Kakao will now begin a transition beyond a messenger into an agentic AI platform used by 50 million users.”

Kakao