(2nd LD) Kakao Q3 operating profit up 15.5 pct on stable growth of platform biz

South Korean internet tech giant Kakao Corp. reported a 15.5 percent increase in operating profit for the third quarter of 2022, reaching 240.3 billion won, according to its regulatory filing. The company's sales remained flat at 2.08 trillion won, while net income declined by 7.9 percent to 177.7 billion won. The dominant platform business saw a 17 percent year-over-year sales growth to 1.24 trillion won.

Commerce business revenue grew 13 percent year-over-year to 2.3 trillion won, driven by increased usage of KakaoTalk for shopping and purchases during the Chuseok holiday. Additionally, ride-hailing and payment services within the platform unit generated 602.1 billion won in sales, a 21 percent year-over-year increase. However, content business sales dropped by 6 percent year-over-year to 851.7 billion won due to reduced album releases and concert attendance, as well as a decline in social networking service, KakaoStory, sales.

CEO Chung Shin-a acknowledged that the company's AI services expansion did not meet market expectations. Nevertheless, Kakao plans to intensify its focus on AI services, with a pilot run of the AI assistant, Kanana Space, set for December launch, followed by a formal launch by year-end. The company also announced a 150 billion won share buyback to boost shareholder value.