Kakao Shares Rise After Solid 2023 Revenue Growth
By Kwanwoo Jun
Kakao Corp.'s shares rose after the South Korean internet platform company posted solid revenue growth in 2023 but its first annual net loss in four years.
The mobile internet company's stock ended 7.8% higher at 59,200 won ($44.51) Thursday, paring early sharp gains but still notching the sharpest daily rise in more than a year, according to FactSet. The benchmark Kospi fell 0.3% for the day.
Earlier, Kakao said revenue jumped 14% in 2023 to hit a record high of KRW8.106 trillion.
Revenue from online advertising, e-commerce and paid content sustained the growth, with the ad market continuing its recovery in South Korea.
The company, however, posted a net loss of KRW1.497 trillion in 2023 after three straight years of profits. It last reported a net loss in 2019.
Kakao attributed the annual net loss largely to its active recognition of goodwill impairments and increased costs following the acquisition of new assets.
Kakao last year acquired a controlling stake in SM Entertainment, a talent agency behind several popular K-Pop acts, which led to it incurring labor and other business expenses during the final quarter.
Operating costs rose 16% to KRW7.604 trillion in 2023, it said.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
February 15, 2024 03:18 ET (08:18 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
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