1. Kakao’s H1 2025 Earnings Analysis: Robust Platform Business, Improved Profitability, Increased AI Investment

Kakao reported consolidated revenue of KRW 3.892 trillion (a 2.5% decrease YoY) and operating profit of KRW 291.3 billion (a 14.5% increase YoY) for the first half of 2025. The platform segment maintained solid growth, while the content segment focused on improving profitability. Kakao also actively invested in AI technology development and data center construction to secure future growth engines.

2. Key Investor Focus Points for the September 3rd IR Event

Investors are anticipating answers to the following key questions at the upcoming IR event:

  • AI Investment Performance and Monetization Strategy: What results has Kakao’s AI technology investment yielded, and what is the future monetization strategy?
  • High Debt Ratio Management Plan: How does Kakao plan to manage its elevated debt ratio resulting from aggressive investments?
  • Macroeconomic Environment Response Strategy: How will Kakao respond to the unstable macroeconomic environment, including interest rate hikes and increasing exchange rate volatility?

3. Kakao Investment Strategy: Make Informed Decisions Post-IR Event

Kakao possesses growth potential through its robust platform business and AI technology investments, but its high debt ratio and intense market competition pose risk factors. Investors should carefully review the information presented at the IR event and comprehensively evaluate the company’s long-term growth potential and risk factors before making investment decisions.