1 st Quarter 2018 Results

Transcription

1 1 st Quarter 2018 Results May 10, 2018 Investor Relations Copyright Kakao Corp.

2 Disclaimer Financial information contained in this document is based on consolidated K-IFRS that have not been reviewed by an independent auditor: therefore, the information and financial data contained in this document are subject to change upon an independent auditor s review. The company does not make any representation or accept liability, as to the accuracy or completeness of the information contained in this material. The format and contents of this document are subject to change for future filings and reports. Kakao is not liable for providing future updates on all figures included in this document. 2 Copyright Kakao Corp.

3 Kakao Talk Monthly Active Users Continue to grow our domestic active users +1,095K yoy +325K qoq Total countries serviced: 230+ (based on country codes), in 16 languages Korea Global erage of monthly MAUs. Global includes domestic MAUs. (in thousand) 3 Kakao Corp.

4 Revenue Advertising Content Others 1Q17 4Q17 1Q18 4 Kakao Corp.

5 Revenue 1Q Total Revenue YoY +25% / QoQ +2% Advertising +16% (y) / -3% (q) Content +28% (y) / +7% (q) Others +33% (y) / -3% (q) Advertising Content Others + Podotree + Kakao M 5 Kakao Corp.

6 Advertising 1Q Advertising YoY +16% / QoQ -3% Mobile Advertising +32% (y) / -2 (q) PC Advertising -2% (y) / -5% (q) Mobile PC 6 Kakao Corp.

7 Advertising: kakao Daum 1Q Advertising YoY +16% / QoQ -3% Kakao Advertising YoY +59% Daum Mobile Advertising YoY +13% Daum PC Advertising YoY -3% Kakao Ads Daum Mobile Ads Daum PC Ads 7 Kakao Corp.

8 Content 1Q Content YoY +28% / QoQ +7% Web literature & Emoticon +62% (y) / +13% (q) Music +14% (y) / -2% (q) Game +32% (y) / +18% (q) Web literature & Emoticon Music Game 8 Kakao Corp.

9 Content: Game 1Q Game YoY +32% / QoQ +18% Miscellaneous- Kakao VX (NEW) Mobile +29% (y) / +12% (q) PC +15% (y) / +10% (q) Miscellaneous- Kakao VX Mobile PC 6% 57% 63% 61% 58% 60% 63% 60% 57% 76% 40% 37% 9 Kakao Corp.

10 Others 1Q Others YoY +33% / QoQ -3% Others +116% (y) / +32% (q) Kakao M- Offline -1% (y) / -21% (q) Commerce +34% (y) / -3% (q) Others (inc. Kakao T, Pay) Kakao M- Offline Commerce 10 Kakao Corp.

11 Summary Results 1Q18 4Q17 QoQ 1Q17 YoY Total Revenue 555, ,685 2% 443,787 25% Advertising 154, ,539-3% 133,302 16% Content 285, ,891 7% 223,694 28% Others 115, ,255-3% 86,791 33% Operating Expenses 545, ,643 7% 405,453 34% Operating Income 10,402 35,042-70% 38,333-73% Operating Margin 1.9% 6.4% -4.5%p 8.6% -6.7%p EBITDA 40,970 70,222-42% 69,922-41% Other Non-Operating Exp., Net -1,347-45,630 97% -12,564 89% Finance Income, Net 5,974 29,042-79% -5,158 n/a Income from Equity Inv., Net 22,151 17,509 27% -2,367 n/a Income before Tax 37,181 35,962 3% 18, % Income Tax 22,531 17,758 27% -36,241 n/a Net Income 14,649 18,204-20% 54,486-73% Equity Holders of the Parent 13,854 11,524 20% 53,715-74% Non-Controlling Interest 796 6,680-88% 771 3% 11 Kakao Corp.

12 Operating Expenses 1Q18 4Q17 QoQ 1Q17 YoY OP Expenses 545, ,643 7% 405,453 34% Labor costs 109, ,602 7% 84,808 30% Fringe benefits 15,258 13,447 14% 12,757 20% Depreciation 15,985 15,659 2% 14,816 8% Rental fees 10,210 9,236 11% 8,751 17% Commissions 210, ,456 4% 160,386 31% Advertising 47,941 36,105 33% 24,959 92% Bad Debt Exp ,112-21% % Amortization 14,583 19,521-25% 16,773-13% Content fees 39,988 34,448 16% 24,923 60% Ad agency fees 22,390 23,576-5% 19,051 18% Event fees % % Cost of goods 46,835 41,735 12% 30,344 54% Miscellaneous 10,315 9,803 5% 7,634 35% 12 Kakao Corp.

13 Profits 1Q Operating Income YoY -73% / QoQ -70% Net Income YoY -73% / QoQ -20% Operating income declined by W47bn due to investments in new businesses to build mid- to long-term growth base such as transportation/mobility, tech-fin, global expansion and artificial intelligence. Operating Income Net Income Operating Margin Net Margin 13 Kakao Corp.

14 Capital Expenditure 1Q CapEx to Revenue Ratio of 3% YoY -21% Intangible YoY +124% property and equipment (server, network, etc.) YoY -48% Intangible Property & Equipment CapEx to Revenue Ratio 12,684 5,232 2,305 15,578 3,801 12,995 3,562 5,374 8,517 13,961 34,209 9,485 19,959 20,656 12,011 9,610 10,331 10, Kakao Corp.

15 Employees Total 6,317 Employees QoQ 83 increased at Kakao, and 402 increased at subsidiaries (inclusion of Kakao VX, etc.) Subsidiaries Kakao (in people) 15 Kakao Corp.

16 Consolidated Financial Statements Consolidated Statements of Income Revenues Advertising Content Game Music Web literature and Emoticon Others Operating Expenses Labor Costs Fringe Benefits Depreciation Rental Fees Commissions Advertising Bad Debt Expenses Amortization Content Fees Ad Agency Fees Event Fees Cost of Goods Miscellaneous Operating Profit Other Non-Operating Income Other Non-Operating Expenses Finance Income Finance Costs Income from Equity Inv., Net Profit before Income Tax Expenses Income Tax Expenses Net Profit from Continued Oper. Net Profit Equity Holders of the Parent Co. Non-Controlling Interest Consolidated Statements of Financial Position Current Assets Cash and Cash Equivalents S-T Financial Instruments Accounts Receivable Other Financial Assets Other Current Assets ㅤ Non-Current Assets Equity Method Investments Tangible Assets Intangible Assets Other Non-current Assets Total Assets Liabilities Trade and N-T Payables Income Taxes Payable Short-Term Debt Other Current Liabilities Non-Current Liabilities Bonds Bonds- CB/EB Deferred Income Tax Liab. Other Non-Current Liab. Total Liabilities ㅤ Paid-in Capital Capital Surplus Capital Adjustments Accum. Other Compre. Income Retained Earnings Non-controlling Interests Total Equity Total Liabilities & Equity 16 Kakao Corp.

17 Financial Statements (Kakao only) Statements of Income Revenues Advertising Content Game Music Web literature and Emoticon Others Operating Expenses Labor Costs Fringe Benefits Depreciation Rental Fees Commissions Advertising Bad Debt Expenses Amortization Content Fees Ad Agency Fees Event Fees Cost of Goods Miscellaneous Operating Profit Other Non-Operating Income Other Non-Operating Expenses Finance Income Finance Costs Profit before Income Tax Expenses Income Tax Expenses Net Profit from Continued Oper. Net Profit Statements of Financial Position Current Assets Cash and Cash Equivalents S-T Financial Instruments Accounts Receivable Other Current Assets ㅤ Non-Current Assets Equity Method Investments Tangible Assets Intangible Assets Other Non-current Assets Total Assets Liabilities Trade and N-T Payables Income Taxes Payable Short-Term Debt Other Current Liabilities Non-Current Liabilities Bonds Bonds- CB/EB Deferred Income Tax Liab. Other Non-Current Liab. Total Liabilities ㅤ Paid-in Capital Capital Surplus Capital Adjustments Accum. Other Compre. Inc. Retained Earnings ㅤ Total Equity Total Liabilities & Equity 17 Kakao Corp.

18 thank you