Kakao's operating profit jumps 18% on strong ad revenue

Founder's indictment could hurt South Korean tech company's reputation

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KakaoTalk, Kakao's main business, helped lift sales in the company's platform division by 10% year on year. © Reuters

NAMI MATSUURA, Nikkei staff writer

SEOUL -- South Korean internet giant Kakao on Thursday posted a consolidated operating profit of 134 billion won (about $97 million) for the April-to-June period, up 18% on the year, propelled by a recovery in advertising revenue and an increase in users.

But on the same day it announced its earnings for the quarter, the company's founder was indicted on charges of stock price manipulation, highlighting potential business risks moving forward.

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