Kakao Q3 net profit down 7.9% to $132.7 mil.

South Korean tech giant Kakao reported a 15.5% increase in operating profit, reaching 240.3 billion won (US$179.2 million), for the third quarter of 2021. This growth was driven by stable performance from its flagship platform business. The company's overall sales remained flat at 2.08 trillion won, while net income declined by 7.9% to 177.7 billion won.

Kakao's platform business saw a 17% increase in sales to 1.24 trillion won. The commerce segment, benefiting from increased use of KakaoTalk for purchases during the Chuseok holidays and general shopping, grew by 13% to 2.3 trillion won. The ride-hailing and payment services within the platform unit also saw a 21% year-on-year growth, generating 602.1 billion won.

However, earnings from the content business fell by 6% to 851.7 billion won due to fewer new album releases and concerts, and a drop in sales from the social networking service KakaoStory.

Kakao plans to accelerate the rollout of its AI assistant, Kanana Space, projecting monthly active users to reach 10 million by year-end. A pilot of Kanana Space will launch in December, with a full introduction of the Kanvas AI service by the end of the year. Developed through a government-led initiative, Kanvas AI aims to make AI services accessible to all.

CEO Chung Shin-a emphasized the importance of investing in AI services, stating that exceeding market expectations is crucial for meeting shareholder expectations and enhancing corporate value.