Kakao profit rises 7% on ad growth, unveils W150b buyback

What happened: Kakao reported a 7 percent rise in quarterly operating profit on advertising growth and announced a 150 billion won share buyback and cancellation plan. Key numbers: Operating profit 240.3 billion won, down 13 percent from the prior quarter's record. Revenue up 6 percent to 2.09 trillion won. Display ad revenue up 35 percent. Why it matters: Kakao expects AI advertising to contribute to revenue growth from 2027 and its AI business to approach breakeven in 2028, while content revenue fell 6 percent on a 15 percent decline at Piccoma. Coverage: 3 outlets in 24h

Kakao reported a 7 percent rise in quarterly operating profit on advertising growth and announced a 150 billion won share buyback and cancellation plan.

Kakao expects AI advertising to contribute to revenue growth from 2027 and its AI business to approach breakeven in 2028, while content revenue fell 6 percent on a 15 percent decline at Piccoma.