SEOUL, KOREA - Daum Kakao announced on November 7 that its operating profit stood at 30.8 billion won in the third quarter of this year, down 6 percent from a year ago.Sales, however, rose 20.7 percent to 221.8 billion won. Daum Kakao suffered a net loss of 6.3 billion won during the third quarter.
Daum Kakao, a business entity created through a merger between Kakao and Daum on October 1 this year, revealed its first consolidated business results.The breakdown of sales by business segment showed that the game business marked the most outstanding performance.
Daum Kakao’s overall game sales rose 34.9 percent year on year to 67.5 billion won thanks to the increase in sales of mobile RPG games.Advertising sales also rose 11.9 percent to 141.9 billion in the third quarter, a traditionally low-demand season for advertising business.
Backed by the robust sales growth of Kakao Gift and Kakao Story, its commerce sales jumped 90.7 percent to 7.8 billion won.In Daum Kakao’s total sales, mobile sales accounted for about 48 percent. The company blamed the decline in profit on the reflection of M&A cost estimated at 51.7 billion won.
Article provided by The Korea Economic Daily
