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Technology Services

Kakao Corp.

  • 102,500.00 KRW
  • -1,500.00
  • -1.44%
  • South Korea
    Nov 15, 2018
  • Ticker
    KRX(035720)
  • Prev. close
    104,000
  • Market cap (KRW)
    8,672.17B
  • Market cap (USD)
    7,679.58M
  • Shares
    83.38M

Company Background

Kakao is a leading South Korean information technology company created in October 2014 by a merger between Daum Communications, the operator of the Daum search engine, and Kakao, the provider of the KakaoTalk chat app. It has been adding new services, such as mobile payments, to attract more users in Southeast Asia and elsewhere.

Kakao's search engine market share in South Korea has been hovering at some 20%, lagging behind Naver, another Seoul-based company. But KakaoTalk has more than 37 million monthly active users, meaning that over 70% of South Koreans use the instant messaging service -- an outstanding market presence.

Kakao has been adding services, including online shopping, taxi hailing and music streaming, to add more value to KakaoTalk. Currently, advertising and games generate most of its revenue, but earnings from digital content and e-commerce operations are rising.

Kakao is behind WhatsApp, from U.S.-based Facebook; WeChat, from China-based Tencent Holdings; and Line, from Naver; as far as number of users and global scale go. But it is trying to gain Southeast Asian users and recently acquired Path, a U.S.-based social network that has gained a degree of popularity in Indonesia.

Business Summary

Kakao Corp. is engaged in developing portals and other internet information service parameters. It operates through following business divisions: Advertising Platform and Contents Platform. Its services offered includes communication, media, content, games, lifestyle, fintech, and search. The company was founded on February 16, 1995 and is headquartered in Jeju-si, South Korea.

Financial Highlights

Dec 2017 KRWUSD
Revenue1,972.32B1,744.63M
Gross Profit598,492.82M529.40M
Operating income164,498.78M145.50M
Income before tax153,297.72M135.60M
Net income108,596.68M96.05M
EBITDA294,316.87M260.33M
Diluted EPS1,5521.37
Dividends Per Share1480.13
Total Assets6,349.42B5,930.99M
Total liabilities1,841.60B1,720.24M
Total equity4,029.13B3,763.61M
Operating cash flow371,927.05M328.99M
Currency in KRWCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 210,775.88M 498,857.72M 932,151.82M 1,464.23B 1,972.32B
Gross Profit 151,674.72M 224,996.71M 188,736.60M 260,260.41M 598,492.82M
Operating income 65,852.34M 176,427.09M 89,170.62M 116,135.05M 164,498.78M
Income before tax 65,999.02M 171,439.97M 114,015.74M 110,679.41M 153,297.72M
Net income 61,406.94M 150,105.00M 75,665.68M 57,673.84M 108,596.68M
EBITDA 72,587.85M 199,482.97M 164,562.61M 229,913.75M 294,316.87M
Diluted EPS 1,248 3,007 1,220 850 1,552
Dividends Per Share 1,133 173 167 148 148
Total Assets 217,200.41M 2,768.02B 3,188.47B 5,484.11B 6,349.42B
Total liabilities 39,943.79M 304,796.83M 603,002.73M 1,781.17B 1,841.60B
Total equity 177,256.49M 2,454.61B 2,552.39B 3,432.51B 4,029.13B
Operating cash flow 70,505.20M 220,333.97M 162,217.47M 321,323.12M 371,927.05M
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 192.53M 473.90M 823.59M 1,262.06M 1,744.63M
Gross Profit 138.54M 213.74M 166.75M 224.32M 529.40M
Operating income 60.15M 167.60M 78.78M 100.10M 145.50M
Income before tax 60.28M 162.86M 100.73M 95.39M 135.60M
Net income 56.09M 142.59M 66.85M 49.71M 96.05M
EBITDA 66.30M 189.50M 145.39M 198.16M 260.33M
Diluted EPS 1.14 2.85 1.07 0.73 1.37
Dividends Per Share 1.03 0.16 0.14 0.12 0.13
Total Assets 205.80M 2,518.33M 2,719.26M 4,540.58M 5,930.99M
Total liabilities 37.84M 277.30M 514.26M 1,474.72M 1,720.24M
Total equity 167.95M 2,233.19M 2,176.78M 2,841.95M 3,763.61M
Operating cash flow 64.40M 209.31M 143.32M 276.95M 328.99M

Valuation Measures

Dec 2017
PER85.51
ROA1.83%
ROE2.91%
Operating margin8.34%
Profit margin5.50%

Key executives

  • Chief Executive Officer & Director: Jee-Hoon Rim

Shareholders

  • KIM BEOM-SOO /KAKAO/ (26.9%)
  • Maximo Pte Ltd. (6.7%)
  • National Pension Service of Korea (5.4%)
  • Affinity Equity Partners (HK) Ltd. (3.3%)
  • HYEONG IN-WOO (1.8%)
  • OppenheimerFunds, Inc. (1.7%)
  • The Vanguard Group, Inc. (1.5%)
  • BlackRock Fund Advisors (1.4%)
  • Samsung Asset Management Co., Ltd. (0.7%)
  • Norges Bank Investment Management (0.5%)

Contact Details

Related Companies

  • Kakao Page Corp.
  • Kakao Corp. /Music Content Bus/
  • Kakao Japan Corp.
  • Kakao Page Co. Ltd.
  • Kakao Brain Co. Ltd.
  • Kakao Investment Co. Ltd.
  • Parking Square, Inc.
  • Kids Note Inc.
  • Daum Kakao Corp. Esop
  • Kakao Ventures LLC
  • LOCNALL, Inc.
  • Path, Inc. (California)

Competitors

  • Twitter, Inc.
  • Facebook, Inc. Class A
  • SK Holdings Co., Ltd.
  • SINA Corp.
  • NAVER Corp.
  • NHN Entertainment Corp
  • Snap, Inc. Class A
  • BlackBerry Limited
  • migme Limited
  • Weibo Corp Sponsored ADR Class A
  • KT Corporation
  • Shinhan Financial Group Co., Ltd.
Last Updated on 15 Nov, 2018

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