KakaoPay posted record quarterly revenue, operating profit and net profit in the second quarter of this year. Revenue from financial services rose 75 percent from a year earlier and, for the first time, accounted for more than half of total revenue.

KakaoPay said on Monday its second-quarter consolidated revenue rose 40.6 percent from a year earlier to 335.1 billion won. Operating profit jumped 528.2 percent to 58.6 billion won, while net profit rose 251.3 percent to 49.6 billion won.

Operating margin came in at 17.5 percent and net margin at 14.8 percent. Earnings before interest, taxes, depreciation and amortisation (EBITDA) were 67.5 billion won. Consolidated operating expenses totalled 276.5 billion won.

Second-quarter consolidated transaction volume rose 20 percent from a year earlier to 54.2 trillion won. Revenue-contributing transaction volume increased 19 percent to 15.7 trillion won, accounting for 29 percent of total transaction volume.

By segment, revenue from payment services rose 13 percent from a year earlier to 141.4 billion won. Financial services revenue climbed 75 percent to 175.2 billion won, accounting for 52 percent of total revenue. It was the first time the share of financial services revenue topped half.

Within financial services, revenue from investment and insurance rose 99 percent and 86 percent, respectively, from a year earlier. Platform services revenue increased 44 percent to 18.5 billion won, supported by growth in advertising and telecom brokerage services.

Payment transaction volume increased 25 percent from a year earlier. Online payment volume rose 16 percent, offline payment volume gained 58 percent and overseas payment volume increased 21 percent. Remittance transaction volume grew 21 percent on an increase in remittances related to stock trading. The balance of KakaoPay Money top-ups stood at 2.82 trillion won.

KakaoPay Securities posted second-quarter revenue of 121.9 billion won. First-half cumulative operating profit totalled 63.1 billion won, surpassing last year's full-year operating profit. Total client assets rose 279 percent from a year earlier, while stock and pension assets increased 391 percent.

KakaoPay Insurance posted second-quarter revenue of 25.6 billion won, more than doubling from a year earlier. Gross written premiums rose 66 percent and regular premium payments increased 134 percent.

KakaoPay CEO Won-geun Shin (신원근) said, "As a result of the data-driven personalised services we have consistently pursued, stronger user lock-in and synergy from improving efficiency in managing subsidiaries, a profitability-focused structure has taken root." He added, "Based on our proprietary data and platform capabilities, we will solidify our position as a next-generation financial platform."