Kakao’s cash position boosted after merger with its commerce unit Cash reserves increase by $396 mil to more than $1.2 bil
Translated by Ryu Ho-joung 공개 2021-09-10 08:03:59
이 기사는 2021년 09월 10일 08:00 thebell 에 표출된 기사입니다.
The merger of Kakao Corp and Kakao Commerce has boosted Kakao’s cash position, increasing available cash reserves by 464 billion won ($396.3 million) to 1.42 trillion won.Kakao last Wednesday completed the merger with its commerce subsidiary. The merger is a rolling back of Kakao Commerce’s split-off in 2019. The move is seen as part of efforts by the South Korean tech giant to survive the intensifying competition in the ecommerce market.
After the merger, shareholders’ equity and liabilities of Kakao have increased by 5.6% and 17.6% to 6 trillion won and 2.36 trillion won, respectively, on a non-consolidated basis. The debt to equity ratio has risen from 35% to 39%. But the company’s available cash reserves have jumped by 464 billion won to 1.42 trillion won.
The merger is expected to enhance Kakao’s ability to generate cash flow. The commerce unit, which operates gift service Kakao Gifts and social commerce service Talk Deal, relies on a vast user base of Kakao Talk, the country’s biggest messaging app.
Kakao Commerce’s revenue increased from 296 billion in 2019 to 574 billion won in 2020, with an operating profit more than doubling to 160 billion won in the same period. Its operating profit margin was nearly 30%.
The commerce unit’s 2021 full year revenue is predicted to grow by more than 50% year-on-year. Its prospects for future growth are strong as well, with Kakao Talk’s monthly active users reaching 46.62 million in the second quarter.
It is also likely that the merger will help offset the impact of the absence of Melon, Kakao’s music streaming service, which was recently split off from Kakao to be merged into Kakao Entertainment, Kakao’s entertainment arm.
Since being acquired by Kakao in 2016, Melon has been a cash cow for the company, generating revenue of about 500 billion won annually. The commerce unit’s annual revenue is expected to be more than enough to offset a decrease in revenue due to Melon’s split-off. (Reporting by Seul-gi Kim)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- 우리금융 "롯데손보 M&A, 과도한 가격 부담 안한다"
- 신한캐피탈, 지속성장 포트폴리오 리밸런싱 체계 강화
- 하나금융, ELS 악재에도 실적 선방…확고한 수익 기반
- 하나금융, 자본비율 하락에도 주주환원 강화 의지
- 국민연금, '역대 최대 1.5조' 출자사업 닻 올렸다
- [도전 직면한 하이브 멀티레이블]하이브, 강한 자율성 보장 '양날의 검' 됐나
- [퍼포먼스&스톡]꺾여버린 기세에…포스코홀딩스, '자사주 소각' 카드 재소환
- [퍼포먼스&스톡]LG엔솔 예견된 실적·주가 하락, 비용 절감 '집중'
- [퍼포먼스&스톡]포스코인터, 컨센서스 웃돌았지만 주가는 '주춤'
- 신한금융, ‘리딩금융’ 재탈환에 주주환원 강화 자신감