In brief: Kakao reports massive plunge in 2018 operating profit

• Mobile messenger operator Kakao Corp posted a near 90 percent on-year plunge in operating profit in Q4 2018.
• The South Korean company recorded a US$3.8 million operating profit from October to December, down 87.7 percent from the same period in 2017. As a whole, Kakao’s 2018 operating profit hit US$64 million, down 65 percent year-on-year from 2017.
• Kakao attributed the drop to increased costs, including year-end compensations for employees, marketing expenses to strengthen new businesses, and expanded fee payment due to rising transactions of its various services.
• Despite the massive plunge in operating profit, the company’s revenue increased 23 percent, hitting a “record high” of US$2.1 billion.

Source: Pulse