**Kakao Pay reported a net loss of 21.5 billion KRW last year due to the impact of the TMON and WeMakePrice situations, continuing its deficit. However, financial service transaction volume surpassed 100 trillion KRW annually, demonstrating strong growth.**
In a conference call on the 4th during Kakao Pay’s Q4 earnings presentation, Kakao Pay CEO Shin Won-geun stated, “Despite challenging business environments, we achieved 25% revenue growth, the highest level of our early-year target. By 2025, we aim to achieve growth and profitability through strategies of vertical expansion, traffic-based business, and data monetization.”
For the previous year, Kakao Pay recorded annual revenue of 766.2 billion KRW, with a transaction volume (TPV) of 167.3 trillion KRW, marking increases of 25% and 19% respectively compared to the previous year. The revenue-contributing transaction volume (Revenue TPV) rose 20% to 48.8 trillion KRW.
In Q4 alone, consolidated revenue surged 31.3% year-on-year to 218.2 billion KRW, with TPV up 13% at 43.1 trillion KRW. This significant rise is attributed to advancements in financial services, leading to the highest quarterly revenue growth last year.
Net income reached 5.2 billion KRW, while operating losses stood at 33 billion KRW. Of the operating losses, 31.5 billion KRW is related to expenses from the WeMakePrice situation accounted as bad debt. Excluding these one-time factors, the operating loss was 900 million KRW, almost breaking even for the quarter.
Kakao Pay Securities turned profitable for the first time in the quarter with a 700 million KRW profit, laying the foundation for a consolidated profit transition.
**Payment Segment Shows Growth in Offline and Overseas Payments**
The growth in the payment segment was notably driven by offline payment services. The number of domestic and international offline payment users increased 18% year-on-year. TPV rose 125%, with transaction numbers up 33%.
Baek Seung-jun, Head of Business, mentioned, “As of the end of December last year, the number of users for Kakao Pay’s online and offline overseas lifestyle payment services surpassed 20 million, despite the impact of the bankruptcy of major online merchants like WeMakePrice. Offline and overseas payments expanded, contributing to overall growth in payment services.”
**Securities Post First Quarterly Profit Amid Rising Stock Trades and New Customer Acquisitions**
Kakao Pay Securities posted an operating profit in Q4. The number of domestic stock transactions surpassed 54 million, a fourfold increase year-over-year, driven by increased fee revenue from expanded transaction volumes.
New customer acquisition and continuous improvements in stock services led to an 81% rise in Q4 stock transaction volume, totaling 17.3 trillion KRW.
Park Jeong-ho, Head of Service, stated, “Kakao Pay Securities is enhancing its mobile trading system (MTS) features, including a profit calculator and a single-touch order function on the order book. We plan to offer differentiated investment information utilizing AI techniques to summarize U.S. market data.”
**Insurance Enhances User Convenience Through MyData Integration**
Kakao Pay Insurance, leveraging high accessibility via KakaoTalk and the Pay application, secured 3 million customers within two years of its launch.
It also provides insurance management and diagnostic services, utilizing MyData connections. The service assesses coverage levels based on user insurance information and recommends optimal insurance products via non-face-to-face chat or phone consultations.
Sung-ho Lee, CFO, commented, “While it’s challenging to predict when we’ll turn profitable due to market fluctuations, we cautiously expect to reach a point where the visibility of a turnaround becomes evident at some stage this year.”