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Technology Services

Kakao Corp.

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 2019 KRWUSD
Revenue3,070.11B2,632.61M
Gross Profit1,483.37B1,271.98M
Operating income207,134.95M177.61M
Income before tax-214,485.68M-183.92M
Net income-301,002.84M-258.10M
EBITDA425,905.79M365.21M
Diluted EPS-3,775.94-3.23
Dividends Per Share1270.10
Total Assets8,737.25B7,555.23M
Total liabilities2,997.13B2,591.67M
Total equity5,225.35B4,518.44M
Operating cash flow752,667.42M645.41M
Currency in KRWCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 932,151.82M 1,464.23B 1,972.32B 2,416.99B 3,070.11B
Gross Profit 188,736.60M 260,260.41M 1,086.49B 2,076.22B 1,483.37B
Operating income 89,170.62M 116,135.05M 164,498.78M 69,392.30M 207,134.95M
Income before tax 114,015.74M 110,679.41M 153,297.72M 130,669.86M -214,485.68M
Net income 75,665.68M 57,673.84M 108,596.68M 47,885.55M -301,002.84M
EBITDA 164,562.61M 229,913.75M 294,316.87M 204,421.16M 425,905.79M
Diluted EPS 1,220 850 1,552 614 -3,775.94
Dividends Per Share 167 148 148 127 127
Total Assets 3,188.47B 5,484.11B 6,349.42B 7,959.54B 8,737.25B
Total liabilities 603,002.73M 1,781.17B 1,886.50B 2,332.38B 2,997.13B
Total equity 2,552.39B 3,432.51B 4,029.13B 5,136.85B 5,225.35B
Operating cash flow 162,217.47M 321,323.12M 371,927.05M 491,469.88M 752,667.42M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 823.59M 1,262.06M 1,744.63M 2,196.23M 2,632.61M
Gross Profit 166.75M 224.32M 961.06M 1,886.59M 1,271.98M
Operating income 78.78M 100.10M 145.50M 63.05M 177.61M
Income before tax 100.73M 95.39M 135.60M 118.73M -183.92M
Net income 66.85M 49.71M 96.05M 43.51M -258.10M
EBITDA 145.39M 198.16M 260.33M 185.74M 365.21M
Diluted EPS 1.07 0.73 1.37 0.55 -3.23
Dividends Per Share 0.14 0.12 0.13 0.11 0.10
Total Assets 2,719.26M 4,540.58M 5,930.99M 7,133.48M 7,555.23M
Total liabilities 514.26M 1,474.72M 1,762.18M 2,090.32M 2,591.67M
Total equity 2,176.78M 2,841.95M 3,763.61M 4,603.73M 4,518.44M
Operating cash flow 143.32M 276.95M 328.99M 446.58M 645.41M

Valuation Measures

Dec 2019
PER--
ROA-3.60%
ROE-5.80%
Operating margin6.74%
Profit margin-9.80%

Key executives

  • Co-Chief Executive Officer & Director: Su-Yong Joo
  • Co-Chief Executive Officer & Director: Min-Soo Yeo
  • Head-Compliance Support: Sung Kang

Shareholders

  • KIM BEOM-SOO /KAKAO/ (25.4%)
  • National Pension Service of Korea (8.4%)
  • Maximo Pte Ltd. (6.3%)
  • Kakao Corp. (2.8%)
  • The Vanguard Group, Inc. (1.8%)
  • BlackRock Fund Advisors (1.3%)
  • BlackRock Advisors LLC (0.9%)
  • Norges Bank Investment Management (0.9%)
  • Fidelity Management & Research Co. LLC (0.6%)
  • BlackRock Advisors (UK) Ltd. (0.4%)

Contact Details

Related Companies

  • Wind Pictures Corp.
  • NBT America, Inc.
  • TJ Partners Corp.
  • KAKAO MAKERS Corp.
  • Kakao Commerce Corp.
  • Linkage Lab Corp.
  • Kakao Corp. /Music Content Bus/
  • Kakao Japan Corp.
  • Kakao Brain Co. Ltd.
  • Kakao Investment Co. Ltd.
  • Parking Square, Inc.
  • Kids Note Inc.
  • Daum Kakao Corp. Esop
  • Kakao Ventures Co. Ltd.
  • LOCNALL, Inc.
  • Path, Inc. (California)

Competitors

  • NHN Corporation
  • SINA Corp.
  • NAVER Corp.
  • Snap, Inc. Class A
  • Twitter, Inc.
  • A.C.N. 059 457 279 Limited
  • Weibo Corp Sponsored ADR Class A
  • Danawa Co., Ltd
  • KT Corporation
  • Dreamus Company
  • GENIE MUSIC CORP
  • NHN KCP Corp.
  • Shinhan Financial Group Co., Ltd.
Last Updated on 20 Oct, 2020

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