Kakao Corp. has reached the goal of 1 trillion won in annual sales in 2016 on the back of the good performance in its contents and character business. Kakao said on February 9 that last year's consolidated sales revenue was 1,464.2 billion won, up 57.1 percent from the previous year. Its operating profit was 31.1 percent higher than 2015 to 116.1 billion won. Both sales and operating profit were higher than the consensus figures of 1,429.1 billion won and 112.7 billion won.
The consolidated sales and operating profit of the fourth quarter last year were 453.8 billion won and 38.2 billion won, respectively, up 87.8 percent and 85.1 percent from the same period in 2015.
The driving force behind the fourth quarter's good performance was the content business including game, music, and webtoon. The company's content platform sales were up 228.7 percent to 221.5 billion won. Sales of 103.6 billion won were generated in its music content platform in 2016. The music content sales for the fourth quarter 2016 was 106.9 billion won, up 12.0 percent from the previous quarter.
As for game content sales, it was 93.2 billion won, up 63.4 percent year on year. Its commerce business performance, based on character sales, made an important contribution to the company's good performance, including the opening of the Hongik University location of Kakao Friends flagship store. The sales of other units that include commerce business sales were up 337.9 percent to 90.8 billion won from the previous year.