Hello, I'm Eleanor from Kakao CAC IR team. Let's begin the Second Quarter 2022 earnings conference call. Today with me we have NK, the CEO of Kakao, and Senior Vice President JB. Please also note that the earnings results are consolidated estimates under the KIFRS basis and are subject to change upon the auditor's review. Also, forward-looking estimates are based on assumptions, so actual results may differ from figures included in today's presentation. With that, I will invite our CEO, NK, who will run through Kakao's business highlights.
Good morning. I am NK from Kakao. Since the beginning of the year, there were concerns over global economic slowdown and macro backdrop has been challenging. High base of earnings seen over the past two years during the pandemic weighed down heavily as a burden in terms of growth, and I expect it will continue to be a burden in the 2nd half. In the face of difficult environment, it's important to clearly identify and define our strength and the core, and we came to the conclusion that to us, it is ad and commerce. As mentioned during the last call, Kakao will move beyond the limits of KakaoTalk by moving from real-time communication tool to becoming an interaction-based service free from the bounds of one single objective, allowing a lighter touch and casual interaction while expanding into connecting with strangers beyond friends who share common interests. We have already started to redefine the tabs on the Talk platform as we embarked on this evolution.
I will go into a little more detail on the strategy and changes that are upcoming in the 2nd half of the year. There will be a revamp of Profile and Friends tab on KakaoTalk with an addition of social interaction elements allowing people to casually interact with friends, going beyond a simple real-time-based conversation. Profile was where people expressed themselves, but it was one directional. Through the changes which will happen this year, friends, after discovering your status or messages on the profile, can leave behind, for instance, a thumbs up emoji or other interesting emojis, making the profile segment a place for sympathetic and interactive communication. These changes will also allow people to express more things under Profile segment if they want to receive encouragement or to be congratulated for certain events.
Friends who come by that message can leave behind their reactions or even send gifts without having to leave the profile page to go to the gifting services. Also, we see that people are reluctant to update their profile all that often because on KakaoTalk you have friends who are very close, not so close, and others who you've never even met before. We decided to create a new segment where people can upload content more frequently about what they're doing during the day and what they feel at a certain moment, introducing a new feature allowing users to share such information to predefined group of friends. This will encourage people to frequently update their content, sharing what they're doing during the day and what they're feeling, and users can visit their friends' profile and consume such shared content.
This 1st tab in KakaoTalk, the Friends tab, will evolve into a window through which you discover what your friends are up to whenever you are feeling bored, and a place where you express yourself. Through such changes, we expect number of profile views and time spent and other user activity metrics will increase, and through a strong coupling with TalkBiz, which include advertisement, gifts, and emojis, we can look forward to additional monetization opportunities. Before the end of the year, we plan to expand this Bizboard surface in the Friends tab, helping to connect more advertisers with users. We also expect our Emoticon business to further expand as people use it as a tool for interaction inside not just the chat rooms, but in the profile segment. Bigger potential will be seen from synergies with gifting.
KakaoTalk Gift saw a rapid growth following the addition of birthday friends in the 1st half of KakaoTalk. Apart from birthdays, there was lack of connection between events, either for celebration or for consolation, and the very act of gifting. If it's made easier for people to discover how their friends are or what they are up to by looking at the profile segment of the Friends tab, the act of gifting for even minor occasions can reinforce the context around gift giving, working as another trigger for growth for us. KakaoTalk, having been a tool connecting friends, has the Open Chat, a feature which is for connecting strangers who share the same interests. Although we didn't run any special promotion for Open Chat, it became a very strong service with a DAU of 9 million users.
From the 2nd half of the year, we plan to make improvements for better user entry into Open Chatting while making upgrades to broaden the user base and further activate the services. We will start by expanding entry points for the Open Chat in various services within the Kakao ecosystem. Just last month, we added Open Chat shortcut to KakaoTalk More tab and in search results. This month, we will add an entry point on the uppermost part of the Chatting tab. Once we create a nexus between Open Chat and content platform like KakaoPage, Melon, or large-scale events like the MMA, I believe there will be greater inflow of users engaging in Open Chatting from respective fandom. By way of strong coupling between the Open Chat and Kakao's extensive content and platform that supports mega traffic, Open Chatting will continue to develop as Korea's biggest interest-based service.
Eventually, we will also plan to launch a standalone application called Open Link and go global after we lay down solid basis in the domestic market. In the near future, I hope global fans can talk about their favorite Kakao Webtoon by coming together on the Open Link platform. KakaoTalk's fifth tab will also get a new facelift. This tab works as a nexus connecting with services across greater Kakao affiliates. We plan to redesign the tab to make it a convenient channel through which we reach out to the world, enabling users to connect to services inside the Kakao ecosystem, as well as access everyday service from off platform, making the tab another reason for users to come and use KakaoTalk every day. Enhanced user activity will also eventually form the basis for Kakao's core businesses, i.e., advertisement, commerce business, notching up profit generation capability of the TalkBiz.
Next, I will elaborate on TalkBiz. First is platform. For TalkBiz Ad, driven by inventory optimization on Bizboard and surface expansions outside the Talk, revenue was up 20% on year. We plan to aggressively expand Bizboard surfaces in the 2nd half as we go into the 2nd half of the year. Now, we have plans to introduce Bizboard in the Friends tab, that is the 1st tab, and expand into Kakao Pay and KakaoBank. We also expanded ad surfaces off platform like min, Bunjang, Everytime, and L.POINT. We are getting inquiries from companies who wants to adopt Bizboard, and so we expect our inventory to grow going forward. For KakaoTalk Channel, there was 27% rise in number of large channels who have more than 100,000 friends, as revenue posted a 47% growth.
Kakao Sync continues to support the increase in Talk Channel friends for advertisers, through which advertisers are engaging in active marketing communication, and this linkage is becoming stronger. As of the 2nd quarter, there are now 20,000 advertisers who adopted the Sync, and this uptrend is expected to continue, supported by the e-commerce platform connections. For the entire year, we are looking forward to a solid growth from the Talk Channel. Next is on the TalkBiz Commerce business. Second quarter's TalkBiz Commerce total GMV was up 19% year-on-year, reporting KRW 2.1 trillion. Talk Gift GMV was up 19% year-on-year, while Talk Store posted a 7% growth.
On full lifting of social distancing measures in the 2nd quarter, there were signs of slowdown across domestic e-commerce market, as impact was felt by our major business verticals in the commerce business, including Gift and Talk Store. High base from special demand during the pandemic period is expected to weigh down heavily on commerce growth for Q2 and the 2nd half of the year. As I've mentioned before, from the 2nd half, as social interaction elements will become stronger on the Talk platform and gifting scene expands to include minor everyday occasions and through strong coupling with Open Chat, which can activate active gift giving to people who aren't necessarily friends, we will all be leveraged as new driver for growth for KakaoTalk Gift.
Talk Store, which has developed based on Talk Deal, will evolve into a B2B2C commerce platform. Unique to Kakao, which combines a real-time message type ad, which is the KakaoTalk Channel, and through a new expansion into commerce search ad business model, we will secure a foothold for another growth forward. Next, Senior Vice President of Jay Bae, will walk through Q2 highlights of our key affiliates.
Hello, this is Jay. Let's begin with the global performances for the Q2. Let's begin with Global Story business results 1st. In North America, we are ramping up growth by taking our K Webtoon, which is proven and tested. Tapas, the webtoon platform from North America, is gradually expanding original IPs, which led to more than 75% of revenue coming from IPs of Kakao Entertainment.
In August, with finalization of the Radish, Tapas and Wuxiaworld mergers, we now have a more solid platform network. We plan to further build on these synergies through integrated marketing strategy underpinned by content library across Korean webtoons, English native web novels, and contents that cater mostly to male audiences. Through such original IPs and synergies with the platform, we are targeting about KRW 500 billion of North American platform GMV in 2024. In Japan, Kakao Piccoma has a solid number one position in Japan's app market, with monthly users surpassing 9.5 million in Q2, driving a record high monthly GMV of above JPY 8 billion. Piccoma Europe, with its launch in France last March, is seeing steep growth in number of downloads and users, driven by competitiveness of having both Korean webtoon and Japanese manga very quickly solidifying its market position.
In Southeast Asia, services in Taiwan, Thailand and Indonesia went through a renewal as Kakao Webtoon. AAA IPs that had a successful domestic run are being showcased in sequence, and we will endeavor to become a number one platform in the ASEAN market by speeding up offering of competitive titles on the ASEAN platform. Kakao's Global Story business is strengthening its global positioning underpinned by extensive content library, advanced platform, and specialized marketing strategies. As a result, global mix out of the total story platform, including Piccoma and Kakao Entertainment in Q2, went up to around 80%, continuing its growth trajectory as truly a global business. In our media business, the film Hunt was invited to Cannes and Toronto Film Festivals and had a presale run in 144 countries, attesting to Kakao Entertainment's global content production capacity.
With the release in the 2nd half and featuring of lineup of content through a global OTT platform, including director Yoon Jong-bin's Suriname, we expect to continue on with the step-up trend in media business. Global OTTs have announced that they plan to continue to invest in Korea as its drama, films and entertainment contents are at the forefront of the content market. With the content capabilities of Kakao Entertainment aligned with market opportunities, we expect growth to further speed up. For the music business, as global fandom for K-pop expands, music revenue is growing fast, with also a supporting of a solid Melon revenue and artists like IVE, Monsta X, and THE BOYZ are planning on going global to U.S. and Japan, and we expect this will also drive the growth of the music business and will also expand the global fan base.
For Kakao Games, on the back of a successful run of the mobile games Odin and Umamusume: Pretty Derby, we proved yet again the company's acumen in running the game business. was launched in June 2020, and with a major update in July, became a top grossing title in both marketplaces, and on the day of the update, recorded the highest daily revenue and rebound in user metrics. The game will serve as an important underpinning of the game lineup for the company, and in the 2nd half it will bring visible performance from the global market. We will also release new titles including Eversoul and Dysterra, and will launch Odin in Japan, North America and Europe sequentially starting the 1st half of the year. First half of next year, that is.
The global expansion of K-content cuts across stories, music, media, and games, which is building a global fandom base, and we believe this will open up opportunities for our global commerce business. We are hence making preparations to take our commerce business global, starting with Zigzag and Grip, and we're testing Zigzag Global for an official launch in September, targeting Japan, North America, and Canada. We are also planning on supporting Korea's fashion and beauty businesses so that they may go global with Korea's highly competitive fashion and beauty K-style merchandise, elevating their brand awareness in step with K-content. Now for the mobility business. Since the lifting of social distancing last April, we are seeing an explosive growth in demand for mobility. This drove solid growth for taxi and driver-for-hire business, which make up the key revenue stream.
Parking business, which is a new revenue source, has hit record-high quarterly revenue and is uptrending following the footsteps of taxi and driver for hire. With recovery in demand, daily average completion rate for taxi was up 38% year-on-year, while driver for hire saw demand recover. As users largely preferred app-based driver service, total revenue was up 46% year-on-year. Parking is a new business area for us and after acquiring a parking management company, we also bought a specialized operator called GS Park24 last June, gaining a meaningful basis for growth and becoming a car owner's platform. Also, in order to prepare for the age of future mobility, we are making investments into autonomous driving and urban air mobility.
Also, in partnership with Splyt, a global mobility platform company, we launched mobility roaming services sequentially across global markets, supporting the use of Kakao T app, signaling a start of full-fledged attempt at global expansion. For Kakao Pay, we continue to increase acceptance points and universality by increasing core merchants on offline for payment. Following the launch of loan comparison service and MTS, we opened insurance marketplace last July, diversifying revenue stream for financial services. Kakao Pay achieved operating profit margin of 10% on a separate basis, entering a stable profit growth phase, and we expect growth to continue on diversification of business models for financial services.
It is also worth noting that total TPV was up 19% year-on-year to KRW 29.1 trillion, and revenue TPV, which includes payment and financial services, showed steeper growth versus the total TPV, accounting for 29% of the total TPV. Also, number of transactions per user was up 25%, hitting above 100 transactions for the 1st time. Lastly, let me run through the update on ESG management. Kakao has been aligned with the greater society in setting sustainable growth as our objective, and we wish to further advance it. To make a system where ESG is embedded in Kakao and its affiliates, we appointed Simon Hong as a co-CEO of Kakao. We announced our net zero pledge last April and was the 1st Korean internet company to join the SBTi, a global initiative.
Guided by our mission that everyone should benefit from equal access to all of Kakao's service offerings, we were the 1st to create a DAO, short for Digital Accessibility Officer. We will also actively engage in human rights-based management, AI and also in ethics for technology, which are areas that we can excel in. To that end, we launched Technology Ethics Committee, which was a 1st attempt by a local tech company. The committee will explore ways to contribute to greater society through promoting transparency for algorithms, monitoring compliance of AI code of ethics, and lowering the risk that technology may entail. For more details, please refer to our ESG report titled Kakao's Pledge and Responsibility 2021, where we list our goals and results, and we will build on the trust by living up to these objectives.
I will now move on to key financial highlights for the 2nd quarter. Q2 consolidated operating revenue was KRW 1,822.3 trillion, up 10% quarter-over-quarter and 35% year-over-year. Platform revenue was up 5% quarter-over-quarter and 22% year-over-year to KRW 930.7 billion. Office revenue was down 2% quarter-over-quarter and up 16% year-over-year to KRW 453.2 billion. Despite economic slowdown, thanks to optimized inventory, onboarding of big advertisers, ad revenue was up 28% year-over-year, while Kakao Bizboard reported 20% and KakaoTalk Channel a 47% growth. TalkBiz commerce revenue was impacted by limited growth from the online commerce market on the back of the pandemic and on top of the high base effect. We saw slower GMV growth.
Due to the decline in GMV from directly sourced merchandise, which are booked on a gross revenue basis and termination of non-core services like Hairshop, revenue growth came in at 2% year-over-year. For the portal biz, due to changes in accounting treatment for revenue and exclusions to the consolidated statement, revenue was down 10% quarter-over-quarter and 18% year-over-year to KRW 102.4 billion. Aside from such accounting changes, Q2 revenue was up 6% quarter-over-quarter on the back of high seasonality, and down 4% year-over-year due to slower traffic from subdued online activity. For platform and other revenue, with the easing of social distancing leading to demand recovery, taxi and driver for hire revenue reported a robust growth.
With Kakao Pay's steady earnings expansion from payment and financial services business, revenue was up 21% quarter-over-quarter and 52% year-over-year to KRW 375.1 billion. Content revenue was up 16% quarter-over-quarter and 51% year-over-year, reporting KRW 891.7 billion. The game revenue reflects Odin launch in Taiwan for the full quarter and new revenue from Umamusume release. Thanks to positive top-line performance of new businesses and Kakao VX, revenue increased 37% quarter-over-quarter and 162% year-over-year, reporting KRW 336.8 billion. Supported by solid Melon platform revenue, global distribution revenue was up, and on good performance from the company's artists, music revenue was up 2% quarter-over-quarter and 11% year-over-year to KRW 209.3 billion.
Story revenue on the back of increase in outdoor activities, weighing down on domestic user activity and weak yen impact for Piccoma. Revenue was down 5% quarter-on-quarter and up 22% year-over-year, reporting KRW 227.6 billion. Piccoma revenue was down 4% quarter-on-quarter and up 17% year-over-year. But carving out the weak yen FX impact, the growth was 5% QoQ and 27% YoY. Lastly, on expanded lineup of production content underpinned by our internal capabilities, media revenue was up 57% quarter-on-quarter and 35% year-over-year to KRW 118 billion. Let me now move on to consolidated operating expense and operating profit. Q2 consolidated operating expense was up 11% quarter-on-quarter and 39% year-over-year to KRW 1,651.3 trillion.
In terms of the key expense items, labor cost was flattish QoQ. On headcount increase, followed by rise in wages and bonus, labor cost was up 42% YoY to KRW 426.2 billion. Driven by rise in production cost and commissions paid on the back of strong game revenue-linked expense was up 12% QoQ and 23% YoY, reporting KRW 654.8 billion. On rise in taxi-related commissions for mobility, outsourced infrastructure expense was up 15% QoQ and 43% YoY, coming in at KRW 235.8 billion. Driven by strong marketing on global expansion of the story business and launch of new game titles and MTS launch from Kakao Pay, marketing spend was up 31% QoQ and 65% YoY to KRW 150.3 billion.
For your information, marketing spend ratio against our revenue was at 8.2%. Amortization from intangibles such as original video content declined, but an increase in depreciation of lease assets from the new office building lease depreciation expense was up 4% on quarter and 72% on-year to KRW 135.6 billion. All in all, operating profit for Q2 reported KRW 171 billion, with OP margin of 9.4%. Kakao's standalone revenue, comprising ad and commerce business, reported KRW 596.4 billion of revenue and KRW 137 billion of operating profit, with OP margin of 23%. An expanded operating leverage from the core biz, TalkBiz profitability continues to improve. Next is our non-operating revenue and expense.
With the final closing of Lionheart Studio acquisition by Kakao Games last June, there was disposition gain from equity method shares, with other revenue reporting KRW 138.6 billion. Due to reclassification of accounts for Dunamu Holdings and base effect thereof, there was a decline of KRW 1,526.7 trillion QoQ. Other expense came in at KRW 34.4 billion on the back of disposition loss from equity method shares following the sales of invested holdings. Q2 corporate income tax was KRW 135.3 billion, with consolidated net profit of KRW 101.2 billion. Lastly, for CapEx, server and tangibles were KRW 116.2 billion. Intangibles, including IP, around KRW 54 billion, amounting to a total of KRW 170.3 billion of CapEx. This ends the presentation and business highlights. We will now begin the Q&A.
Please be mindful and limit your questions to two per person. The 1st question will be presented by Jong- Hwa Sung from eBest Investment & Securities Co.
I would like to ask you two questions. First question relates to your TalkBiz. I see that your year-over-year growth trajectory is easing as we move from Q1 to Q2. Would like to get some color as to what your outlook is for the 2nd half of the year growth prospects. Looking at the current trend, do you have any plans to adjust your year-over-year growth guidance for your TalkBiz? Where do you see key growth drivers coming in for this business as we enter into the 2nd half of the year? My 2nd question, if you look at since the fourth quarter of 2019, there's been quite sizable impairment loss that has been booked under other expenses. Would like to understand what is the current outstanding goodwill that you still will need to further impair going forward.
Should we also expect about KRW 400 billion of impairment losses for the fourth quarter of this year? If that is the case, when will, you know, what will be the timing for us to see the end of the incurrence of impairment loss going forward?
Yes, this is Jay. I will respond to your 1st question, and I will begin with what our 2nd half outlook is. If you look at our Q2 top line growth, it was year-over-year 35%, which was above what we've seen in Q1. Against a very volatile macro environment, and on the back of the endemic, basically, the volatilities of the user metrics have also gone up. We do expect top line growth to somewhat slow in the 2nd half of the year. In light of heightened uncertainties, we are at this point very closely revisiting our business plan in terms of the investment plans and risk management, and we are in the process of making some internal adjustment. We will do our utmost to make sure we bring a fundamental based growth in the 2nd half of the year.
Due to the uncertainty in the economy, brands and advertisers have reduced their budgets, and consumer sentiment has weakened. In addition, with the overall shrinking online commerce market since the pandemic, TalkBiz's growth rate for the 1st half of the year was 20% compared to the same period last year. However, as mentioned in the opening statement, from the 2nd half of the year onwards, KakaoTalk's special services will begin to change in earnest. Accordingly, Kakao Bizboard will be expanded to the Friends tab, the Profile tab will change, the Gift Scene will be expanded, and the synergy with Emoticon will be strengthened.
Because of the macroeconomic uncertainties, we've seen advertisers cut their marketing budget. With the overall consumption sentiment degrading, as well as on the back of endemic, the online commerce market grew at a much slower speed. Because of these unexpected external factors compared, well, if you look at the year-over-year growth, in the 1st half of the year, the growth rate only was at around 20%. As mentioned during our presentation on the earnings, starting the 2nd half of the year, we are going to bring about a very special service offerings under KakaoTalk.
Once again, just to emphasize, this Bizboard is going to expand into the Friends tab, and we will see fundamental changes in our Profile tab, whereby we will be able to expand on gifting, and we will also strengthen synergies with our Emoticon business. Through gaining of such additional growth drivers, our objective is to bring about a higher year-over-year growth compared to that of the 2nd quarter.
Ne, Nam Goong-hoon imnida. Kakaoui honjae gwanggonun il poosenteui gwanggojuga chilsip poosenteui maechureul naeneun gujoro juro tok gibane daeyong gwanggoju jungsimiraseo honjaewa gachi daegieopdeuri ginchuk sanghwangeseoneun deouk bunlihan myeondo itseumnida. Uriga messenger bbumman anira gwanggo singhangeseodo ilddeungeul haryeomyeon buda geumbonjeogin sawobe chaejul gesaeni piryohadago saenggakhamnida. Yakan ije yongho jeongrileul jom meonje hago daeum malseumeul deureumyeon joheul geo gatindeoyo. Gwanggo ogyeesoneun display ad-ui julimarin DA, search ad-ui julimarin SAro keuge gwanggo singhang을 naruneun bubuneu itseumnida. Honjae Kakaoui gwanggo modeureun juro DA seongsigigo apeuro search adwa gateun SA seongsigoro yeongnyeogeul hwakjanghal jeongimnida. Wonrae SA-ui eonoe wi- eowoeneun search ad geu da-chachaero ije geomsaek gwanggo rago hal su-hal su itneundeoyo. Uh, i singhangui sijag-eun geomsaekuro sijaghaetjimanun chaek-e waseoneun chamsaekina balgyeongwa gachi gwansim-ui yeongnyeoguro SA singhang을 dareuge jeonghaeago itseumnida. Geuraeseo, uh, urido daeumeseo balssaeneun geomsaek gwanggo-ga itjiman chuhoeeseoneun KakaoTalk을 jungsimuro geomsaek, geurigo chamsaek, balgyeon-ui yeongnyeogeseo gwanggo-ga hwakjangdoel su itdago saenggakhamnida.
Hello, this is NK responding to your question. Now, if you look at Kakao's overall advertisement business, about 1% of our advertisers are generating 70% of the revenue. Basically, these are large-sized advertisers based off of our Talk, KakaoTalk platform. It is true that when these large companies are tightening their belt, it is going to be less favorable for us in terms of our advertisement business. Now, before moving on, I think it would be helpful if I define some of the terminologies that are used in the advertising industry. There's DA, display ad, and SA, search ad. Mostly, Kakao's advertisement business is structured around DA, display ad, and our plan going forward is to expand into the SA segment, the search ad segment. Now, search ad, as the name implies, has a strong underpinning of search.
Basically, it's the origin of this advertisement model goes back to the search itself. Now we are seeing a trend where we are expanding into not a mere search, but to area of interest. It's more of a discovery and exploration concept that is being added on to this advertisement definition. Going forward, I mean, as of today, we do have search ad with that happening or that's being used within the Daum platform. Going forward, supported by our KakaoTalk platform, we believe that we will be able to expand our advertising in not just the search segment, but in the overall discovery segment.
Ne, habanggi butoeuneun gwansimsa gibane traffic-i pungwon open chatting seubiseui geomsaekgwa kontentsreul gibaneuro haneun gwanggo-reul seonboimyeonso sayonggwa sayongseong maeknage dda- daehan test-eul tonghae wansongdoneun nophaegal gaehag imnida. Geurigo KakaoTalk naeseo shopping-eul handagona Kakao Map-eul tonghae jieog-eul geomsaekhaneun geotga gachi iyongja-ui gwansimsa-ga moineun gosedo gijon geomsaek gwanggo marketing-eul juro haewatton gwanggojudeuri chungbunhi maelyeokjeogiro neukkilmanhan sangpum-eul gominhago sireomhal jeongimnida.
Starting the 2nd half of the year, we are going to introduce in the Open Chat service, basically an advertisement that has the strong underpinning of search plus content. Open Chat is where there's high level of traffic. We will conduct and run multiple number of tests and really enhance the level of completeness of this service offering that we are currently planning for. Just like people do shopping on KakaoTalk or search for a certain location by using the Kakao Map, I believe that the advertiser will feel a sufficient appeal to want to also run a search ad marketing in places and spaces where the users come together under a common interest. We will be testing many different products as we develop and release them going forward.
또 하나 근본적으로 개선이 필요한 부분은 현재 이미지 노출 중심의 광고를 영상 광고 중심으로 변화시키는 부분입니다. 우리가 국내 최대의 이용자와 강력한 트래픽을 가지고 있으면서도 광고주들의 광고 예산 비중을 크게 가져가지 못하는 가장 큰 이유는 유수한 플랫폼들이 선점한 동영상 광고로의 확대가 부족했기 때문이라고 판단하고 있습니다. 비즈보드가 주로 성과형 광고 중심의 이미지 노출이 되고 있는데, 지난해 비즈보드의 프리미엄 확장 형태인 Bizboard Expandable 출시로 비즈보드에서 동영상 소재를 활용한 광고를 제공할 수 있게 되었고, 광고주들로부터 높은 반응을 얻고 있습니다. 앞으로 디지털 광고 시장 내에서 계속해서 동영상 광고의 점유율은 높아질 것으로 예상하고 있기 때문에 비즈보드와 톡채널, 그리고 다양한 콘텐츠 서비스 내에서 주목도 높고 효율이 좋은 광고 영역을 확장할 계획입니다.
Another fundamental improvement that we need is to move away from a static image to a video image as part of our advertisement, you know, in expressing or in surfacing the advertising itself. Despite the fact that we have a very strong traffic and we have the broadest base of users, the reason why we have been unable to gain the majority of the wallet share of large advertisers is because other players have gained an upper hand in video-based advertising. For Bizboard, we are mostly using performance ads, and starting last year, we've re-launched and released Bizboard Expandable, which uses video as the key advertising element, and we've been receiving very positive responses from the advertisers.
We think that this is going to help us increase our wallet share within the video advertisement segment, and we plan to further expand our advertising space for such video-based advertising, which has good efficiencies and high level of appeal.
영업권에 대해서 질문을 주셨는데, 이 분기 연결 기준 영업권은 5조 4,325억 원으로 전분기 대비해서 약 4,649억 원이 증가했습니다. 라이온하트 스튜디오 인수 조건 확장에 따라 영업권이 약 2,600억 원 정도 증가했고, 카카오 모빌리티의 GS파크 인수 등과 관련해서도 영업권이 추가로 인식이 되었습니다. 영업권의 경우에는 시장 상황과 사업 현황의 그 사업의 가치를 계속적으로 보면서 감사의 검토를 진행해 봐야 하기 때문에 지금 추가적인 손상 여부나 규모에 대해서는 조금 언급드리기는 다소 어려운 점을 양해 부탁드리겠습니다.
The question on goodwill. As of the 2nd quarter, consolidated basis, goodwill totaled KRW 5,432.5 trillion, which is about KRW 464.9 billion QoQ increase. As we finalized the terms and conditions of Lionheart Studio acquisition, there was about KRW 260 billion increase in goodwill. With the acquisition of GS Park24 by Kakao Mobility, there was some additional goodwill that has been booked. In terms of the size of the goodwill, the size of the impairment loss, we would have to closely follow the market value as well as the market situation and the business overall conditions, and would need to wait for the opinion of the auditor. It would be difficult for us to provide you with any specific number at this point.
다음으로 질문해 주실 분은 씨티증권의 유인철 님입니다. The next question will be presented by John Yu from Citi Securities.
안녕하세요. 씨티증권 유인철입니다. 질문 기회 주셔서 감사합니다. 저는 두 가지 질문 있는데요. 첫 번째는 Open Chat 관련 질문입니다. Open Chat 기능 활성화 및 수익 모델 도입 시점이 하반기 중에서 언제쯤이 될지 좀 시점이 궁금하고요. 생각하고 계시는 수익 모델들은 어떤 것들이 좀 있는지 구체적으로 예시도 알려주시면 감사하겠습니다. 두 번째는 Google in-app 결제 시행에 따른 영향을 좀 질문드리겠습니다. 얼마 전에 app 업데이트 관련해서 뉴스도 있었는데요. 웹툰, 음악 등 서비스별로 가격 정책이나 마진, 또 가격 정책의 변화가 있으면 유저 반응 등에 대해서 어느 정도 변화가 있을지 궁금합니다. 감사합니다.
I would like to ask you two questions. Can you provide a bit more color on the timing during which you will be adopting a business model and additional features for the Open Chat? It would be helpful if you could also provide some detailed examples of the business model, the monetization model that you're currently thinking of. Second question relates to the in-app payment by Google. There's recently been a news article on this as well. Would like to understand if there's any changes in your pricing policies for each of the services that you offer, such as Webtoon, music, et cetera, and any initial user reactions for that, against that.
오픈 채팅은 앞서 말씀드린 카카오톡, 다음, 멜론과 같은 예시 외에도 다양한 서비스와 자산의 결합을 통해 더 많은 관심사 그룹을 포용하기 위한 논의가 활발히 진행 중입니다. 그동안 오픈 채팅은 별도의 프로모션 없이 900만 일간 활성 이용자를 가진 강력한 서비스로 확장하였는데, 계속해서 카카오 서비스와 콘텐츠 플랫폼을 레버리지한 접점 활동 확대 노력을 통해서 900만을 넘어 더 큰 이용자 기반을 확대할 수 있을 것으로 기대합니다. 수익 모델 적용은 올해 4사분기부터 시작할 예정인데요. 기본적으로는 광고 모델이 우선 도입될 예정이고, 후속적으로 B2C2C, 요즘 많이들 얘기하는 Web 3.0 스타일의 비즈니스 모델이 적용될 예정입니다.
Regarding Open Chat, aside from how it's going to couple with KakaoTalk, Daum and Melon through many other strong couplings with other services that Kakao currently offers, we're currently discussing quite aggressively as to what other groups or what other interest groups we will be able to engage in this process. Even without any particular promotion, we were able to grow this service into a service with 9 million daily active users. We will continuously try to expand the nexus of these services with other content platforms and other Kakao services. I believe that supported by our broad user base, we will be able to bring that additional growth. In terms of the timing for the business model for Open Chat, we will begin to employ that starting Q4 of this year.
Most likely it is going to take the form of an advertisement related business model and so-called B2C2C model, which is recently really talked about under the Web 3.0 approach.
광고 수익 모델과 B2C2C 수익 모델에서 조금 더 설명을 드리면요. 아까 광고 관련된 질문은 비즈보드 답변될 때 연결되는 이야기인데, 기존의 광고들은 디스플레이 애드 중심의 광고였는데 오픈 채팅에 적용될 광고는 서치 애드의 영역에 속하는 관심사 기반의 광고가 될 것입니다. 왜냐하면 카카오톡 오픈 채팅방은 오픈 채팅방 개설 목적 자체가 관심을 근간으로 개설이 되기 때문에 각각의 주제별로 다른 타겟팅의 광고가 적용 가능해짐으로써 해당 영역의 광고는 단순한 디스플레이 애드가 아니라 관심 기반의 SA 영역에 속하게 됩니다.
Yeah. Just to elaborate a little more on the business model for the advertisement and the B2C2C model. Basically, this also relates to my previous answer relating to the Bizboard. The existing ad model that we had employed was a mostly display ad, but in the open chatting space, it will be interest-based search advertisement that's going to come into play. The reason is because basically a person opens up an open chatting room in order to bring people that share a common interest, which means that targeted advertising will be made possible for each of the themes and the topics that people are interested in. This BM is not just going to be a simple display ad model. It will be once again based off of interest, and it will be a search ad type of a model.
네, 그리고 B2C2C 모델을 조금 더 설명드리면, 카카오는 사용자들이 직접 콘텐츠를 제작, 공유에 그치지 않고 콘텐츠를 활용해 경제활동이 가능한 크리에이터를 위한 경제 생태계인 B2C2C를 구축할 예정입니다. Open Chat 역시 크리에이터, 콘텐츠, 슈퍼팬이 선순환되는 구조를 다양한 비즈니스 모델을 통해 만들어 가고자 하는데, 예를 들면 Open Chat방 그 자체가 구독 모델이 돼서 방장이 정보 제공에 대한 수익 창출이 가능해진다던가, 그 외에도 방장이 광고를 채팅방 안에 도입할 수 있도록 의사결정을 스스로 하고, 그를 통해 후원이나 커머스 등의 비즈니스 도구를 활용한 수익화를 도울 예정입니다. 다만 창작자를 위한 수익 모델 적용은 도입 전 충분한 검토와 테스트가 이루어져야 되기 때문에 올해 이후 구체적 계획에 대해서 말씀드릴 수가 있을 것 같습니다.
Now, just to explain a little more about B2C2C, Kakao, what we want to do is to create an economic ecosystem that is B2C2C for the benefit of the creators and for their economic activities. We want to go beyond a mere production of content and sharing of content, but go a step further to even enabling economic activities. For Open Chat, we would like to develop a business model, whereby, for instance, the owner of that chat room can monetize by providing certain information or can decide to run a certain advertisement within their chat room. But of course, before applying such a business model, we are on the creator side. We would definitely need sufficient amount of reviews and testing, so we will only be able to share with you more detailed plans after this year.
구글 앱 마켓 수수료 정책 변화에 관련해서 추가적으로 말씀을 드리겠습니다. 일단 상황을 조금 설명드리면, 인앱결제 강제 금지법이 작년 9월 국회를 통과한 이후 하위 시행령과 고시가 만들어져서 3월부터 적용이 되고 있습니다. 사실 그 국내 법과는 달리 구글과 애플은 아웃링크를 통한 웹 결제를 금지하고 인앱결제 외에 결제 수수료를 부과할 수 있는 제삼자 결제를 도입하는 정책을 발표했습니다. 구글은 그동안 게임 앱에서만 인앱결제를 강제했으나, 6월부터는 모든 디지털 콘텐츠에 인앱결제를 강제하는 새로운 앱 마켓 수수료 정책을 시행하고, 인앱결제 외에도 제삼자 결제를 도입하긴 했습니다. 구글 결제 기준으로는 기존의 카카오 이모티콘 단품 게임에만 적용되었던 인앱결제 수수료가 이모티콘 플러스, 톡서랍 플러스와 같은 정기 구독 상품, 그리고 멜론, 페이지 등의 디지털 콘텐츠 서비스에도 적용이 되었습니다. 이용자 입장에서는 인앱결제가 적용되는 서비스의 가격 허들이 크게 높아졌고, 새로운 결제 옵션을 적용하는 데까지 시간이 필요한 상황이라 사용성 측면에서는 초기 부정적 영향은 불가피할 것으로 판단하고 있습니다.
실질적으로 이모티콘 플러스는 신규 이용자가 기존 대비 1/3 수준으로 하락하여 대응책을 마련하고 있습니다. 인앱결제 도입에 따른 영향은 아직 초기라 좀 더 면밀히 살펴봐야 하고, 수수료 부담 증가가 실제 매출이나 이익에 미치는 영향이 크지 않도록 대응할 계획입니다. 하반기에는 인앱결제 적용에 따른 영향을 최소화하기 위하여 정기 구독자 확대 및 인앱결제 이용자 대상 프로모션도 준비할 예정입니다.
Responding to your question about IAP, Google's in-app market related changes. After the legislation last September of the Prohibition Act on IAP, there has been relevant decrees as well as notification that had been announced, and it's now in effect since the month of March. Google and Apple basically prohibits any outlink, any web-based payment through the outlink and have decided to have announced that they're going to introduce a 3rd-party payment or the off-platform payment where they can actually levy a certain fee on the payment if in-app payment is not the choice, it has not been selected.
Now, Google had only made it mandatory to use IAP for the game application, but starting June of 2022, they have introduced a new pricing policy for the app market, forcing any IAP for other types of digital content on top of the game application. In terms of, based off of Google Marketplace, basically the IAP fee scheme is going to apply, not apply to also Emoticon Plus, as well as Talk Serap Plus and other subscription products as Melon and KakaoPage and other digital contents.
From the user's perspective, because of this new IAP related policies of Google Marketplace, the price hurdle has gone up and it because it takes time to apply this new type of an IAP scheme from the usability perspective at the initial phase, negative impact is inevitable. As a result, if you look at Emoticon Plus product, the new user number has actually gone down to one 3rd of what we had seen over the years. We're now in a place where we are coming up with countermeasures to respond to this change.
Because the IAP adoption is only at its initial phase, we do need to monitor the situation a little further, but we will make sure that this impact or the rise in the payment fee does not have any significant impact on our top line or our bottom line. We are also planning on running promotions for the users using IAP and also for our subscribers in order to make sure that we minimize this impact from IAP in the 2nd half of the year.
다음으로 질문해 주실 분은 키움증권의 김진구 님입니다.
The next question will be presented by Jin-gu Kim from KIWOOM Securities Co.
네, 질문 기회 감사드립니다. 두 가지 질문드리도록 하겠고요. 첫 번째는 올해 하반기 광고 사업 전망을 좀 어떻게 보시는지 여쭙고 싶고요. 현재가 3분기 기준인데 현재까지 분위기하고 최근 광고주 동향도 가능하면 좀 언급을 해주시고요. 이외 연간 전사 실적과 관련된 추가 지표 공유가 혹시 가능하시면 함께 좀 부탁을 드리겠습니다. 그리고 두 번째는 모빌리티 내각 관련된 변수가 계속 존재하는 걸로 이해를 하고 있는데요. 진행 사항에 대해서 다시 한번 좀 업데이트를 부탁드리고, 이외 별도로 전사 중장기 성장을 위한 투자 계획이나 전략이 있으시면 함께 말씀을 부탁드리도록 하겠습니다. 이상입니다.
Thank you. I would like to ask several questions. First is the outlook for your advertising business in the 2nd half of the year. What do you think is the overall market backdrop is, and what are some of the trends that you've were able to identify against for your advertiser base? If you can also share with us a full year projection for different earnings metrics, that would be helpful as well. Second question, there is a lot of talk about the possibility of a sell-off of Kakao Mobility. Can you provide us with an update? What is the company's mid- to long-term investment plan corporate-wide?
Hello, this is Jay. I previously gave you an answer on our Talk business and the outlook for Talk business. Once again, for Talk business, we're expecting higher growth rate in the 2nd half compared to what you've seen on Q2 on a year-over-year basis. Now moving on to other types of businesses, looking at platform other revenue, thanks to the solid growth of Kakao Mobility, Pay and Enterprise, we believe that we will be able to sustain the current growth rate. In the 2nd half of the year, with a increase in or the growth from financial revenue of KakaoPay and higher mobility-related demand from Kakao Mobility, and with the phased launch of public cloud by Kakao Enterprise, we're expecting an uptick in the top line revenue growth.
For blockchain business, we are at this point, quite conservative, in making our projections. For the content business, our story, global story revenue, we are at this point, planning to manage the growth, the speed of growth, of our overseas subsidiaries. We will take on a more conservative stance in terms of, investment in headcount and in marketing. We will focus more on strengthening our services' core competitiveness and improving profitability from a structural perspective. Now, for our music business, thanks to very positive performance that we are seeing from our artists, IVE, THE BOYZ and Monsta X, the top line revenue uptrend is continuing. In the 2nd half of the year, we expect their activities to further elevate, and that will really drive top line additional top line growth.
For the media business, there are multiple number of titles and contents that are upcoming, and we are looking forward to it becoming a global hit. Hence we think that we can continue on with our revenue growth. For our game business, yes, we have a high base, on the back of, Odin's launch in domestic and in Taiwanese market, but driven by the major updates of Umamusume and also lineup of other new titles, we believe that growth can be driven.
Beginning of the year, we announced that a new growth strategy for Kakao will be beyond Korea and beyond mobile. That new initiative businesses will include cloud, artificial intelligence, and healthcare. These are technology-based new businesses that require investment. It's, as of the 2nd quarter, due to or on the back of such investment, operating loss Q2 was KRW 44.3 billion, 1st half cumulative KRW 82.6 billion. We believe that this year is going to be a year where we see a significant rise in investment-related expenses, but these investments are essential for a growth, a future growth of Kakao. For mid to long term, this will also help with further enhancing shareholder value as well.
We believe that from these new initiative business, as we improve on our financial performance, we will be able to step by step downsize on the size of the loss. Looking at each of our business affiliates, if you look at Kakao Enterprise, this year, they are at this point really focusing on security and upgrading performance in order to offer products that embrace multiple needs of our customers so that they can gain a steady stream of revenue through Kakao Work and Kakao i Cloud. For Kakao Work, we are gaining our competitiveness by adopting AI-based custom bots. In the areas of cloud, at this point, in order to accelerate digital transformation of the educational industry, we are currently offering diagnostic services and end-to-end one-stop service, which includes consulting as well.
We also have Kakao Brain that was at the very forefront of cutting-edge technology trends, playing a quite important role, and it had made great contributions by bringing AI technology to many business aspects under the Kakao and its affiliates. Recently, it introduced a product in the education and healthcare segment, and is currently tapping into opportunities for commercialization of AI technology. In July, they released an English education app called Remy, which uses the AI-based natural language technology, and also it is currently collaborating with Kakao Healthcare in order to enter into an image data analytics area that uses artificial intelligence. Going forward, we will continuously develop more business models that incorporate AI as a technology.
To provide a bit more color on our healthcare business, in order to fully ramp up our digital healthcare business, we launched Kakao Healthcare as a corporate entity, and we've appointed Hwang Hee as the CEO of this entity, who had a track record of working at Seoul National University Hospital and ezCaretech. Kakao i Cloud We've completed setting up our organization under Hwang Hee, the CEO. In light of the current economic situation, we were 1st focused in B2B business, which has less sensitivity to economic cycles. For us to ramp up our data platform business. In the 2nd quarter, we are at this point building a Kakao alliance largely around tertiary hospitals and currently developing a pilot for data warehousing.
The virtual care business, which we talked of, which we mentioned during the Analyst Day, we will manage the speed of the implementation of this business in consideration of the economic backdrop.
마지막으로 모빌리티 관련해서 질문을 주셨는데, 저희 Kakao Mobility는 디지털 불모지였던 모빌리티 시장에서 기술과 데이터를 기반으로 한 교통 혁신의 굉장히 큰 유의미한 성과를 거두었다고 생각하고 있습니다. 시대가 요구하는 역할에도 최선을 다해왔고, 그 결과 올해 이 분기 기준에는 가입자 수가 3,200만 명을 넘어서면서 전 국민의 이동 수요를 해결하는 필수 서비스로 자리매김하게 되었습니다. 하지만 그 과정에서 골목상권 침해 논란이나 문어발식 사업 확장이라는 외부의 비판이 있었고, 사회적 요구를 수용하고 모빌리티의 더 큰 혁신과 성장을 위한 방안을 지속적으로 고민해 왔습니다. 언론사에서 공개된 일부 지분 매각은 그 일환에서 선택지 중에 하나로 포함되었을 뿐입니다. 최근 Kakao Mobility에서 모빌리티와 사회의 지속 성장을 위한 협의체를 구성해서 새로운 성장 방안 마련에 대한 의지를 전달했고, Kakao에서는 이 부분을 존중하고 적극 지원할 예정입니다.
Responding to your question about Kakao Mobility. Kakao Mobility brought meaningful results in bringing innovation in the area of transportation, underpinned by technology and data, and it had lived up to the calling. As a result, in Q2, the total number of subscribers stand at 32 million, and it's become a very essential service, providing service to satisfy the mobility needs of the entire population. However, in this process, there were some controversies regarding infringing on the businesses of mom-and-pop stores, reckless expansion. We do admit there were such criticisms. In embracing such criticisms, Kakao Mobility has been thinking very hard about various different options for bringing bigger innovation and growth. Sale of the entity is one of such options.
At Kakao Mobility, they have, at this point, set up a council for inclusive growth or sustainable growth with mobility and the greater society. They have very clearly communicated what their dedications are, and Kakao HQ completely respects that, and we are, at this point, waiting to see what conclusion that they will reach.
마지막으로 질문해 주실 분은 J.P. Morgan의 Stanley Yang입니다.
The last question will be presented by Stanley Yang from J.P. Morgan.
예, 질문 기회 감사합니다. 첫 번째 질문은 Open Chatting 광고 사분기 도입하신다고 하셨는데요. 그 기대 매출과 그다음에 이 Open Chatting 광고의 margin structure에 대해서 말씀해 주시면 감사하겠습니다. 두 번째는 TalkBiz 매출 성장이 둔화 요인이 매크로 이외에 경쟁 요인도 있는지 언급해 주시면 감사하겠고요. 그다음에 삼분기에 이제 그 매크로 경기 둔화가 경영진이 체감하시는 삼분기의 어떤 둔화 속도는 어느 정도 되는지 말씀해 주시면 감사하겠습니다. 이상입니다.
The Open Chat ad that you've mentioned, what is the revenue that you're expecting and what's the margin structure like? Also the growth of TalkBiz and the slowing growth of TalkBiz actually is, aside from the macro impact, how much is attributable or are you getting any impact from the changes in the competitive landscape? The 3rd question is, basically to what extent do you think the macro headwind will slow your business growth in, as you enter Q3?
Open Chatting은 사실 좀 여러모로 이제 시험적인 요소들이 있는데요. 여러 번 언급했지만 그 관심 기반이라는 측면에서 DA에서 SA 형식의 광고로 롱테일 광고 주도로 확장하는 의미가 주요한 환경 변화라고 할 수 있습니다. 이런 변화의 노력은 사실 지금 시장 환경과도 맞닿아 있는데요. 지금 이제 긴축 상황이 되면서 대기업들이 광고 예산을 축소할 때에 대기업 중심으로 광고 모델이 형성되면 해당 긴축 상황에 더욱 크게 영향을 받을 것이기 때문에 이를 보완하기 위한 전략이기도 합니다. 그래서 사실 광고 매출 계획을 이 현재의 경제 위기 상황에 맞춰서 크게 축소할 것인지에 대한 고민을 했는데, 저희 가이던스에 의하면 저희도 크게 하락하지는 않는 것으로 방향을 잡은 것이 바로 이 Open Chatting 등을 통한 광고 모델의 확장 전략을 근간으로 하고 있습니다. 그래서 정확한 광고 매출 예상액을 초기 상황이라 밝혀드릴 수는 없지만, 지금 경제 위기 상황을 타개할 수 있고 소프트랜딩 할 수 있는 그런 툴로서 Open Chatting 광고 모델이 적용될 것으로 기대하고 있습니다.
Now for the open chatting, there are a number of elements that we would be experimenting with. The biggest change will be moving away from DA to SA that is, underpinned by a common interest and expanding to the long tail advertisers. That is in good alignment with how the market is moving at this point. As many large companies cut their advertising budget because of the economic difficulties and the required tightening of spending that is required, I think that this move into an SA model is a strategy that could help us ride over the difficult situation that we are currently facing. In terms of the revenue target, there were some talk as to whether we would need to lower our guidance in line with the current economic crisis.
We decided that this is not going to impact us any significantly in terms of bringing down our revenue, and the very reason why we think that is because we will be expanding our Open Chat advertising model. Although we cannot tell you any specific revenue target as of today because we are only at the initial phase, we believe that this model will help us override the difficult crisis, and we could use this as a soft landing tool across this critical period. You also asked about whether there's any competitive landscape impact as versus the macro impact. We think the bigger impact was from the macro backdrop. There are two aspects to this. Due to economic uncertainties, now companies are cutting down on their marketing budget.
On the back of the pandemic, we are seeing some changes in the user activity metrics. Companies have gone quite conservative in spending their budget, and they are downsizing their marketing activities, and we are seeing that impact directly through our TalkBiz advertisement business. It's quite difficult for us to provide an accurate prediction as to how things will play out in the 2nd half of the year, but we are developing our business plan in full consideration of such negative economic cycle. Looking at user metrics, with a rise in outdoor activities by the users, some of the user metrics have shown some change in Q2 and has impacted our B2C businesses, mainly in commerce and entertainment, and also the high base effect will weigh down on our 2nd half performance as well.
However, as we enter into Q3, some of the user metrics are rebounding, and we are expecting to see a increase in traffic with some phased, changes that we are introducing for our services. Therefore, the concern on continuous, downfall of the user metrics is actually quite limited. Now for the, outlook for Q3, the total revenue for Q3 for TalkBiz, Mobility, Pay and Story business, we expect there to be robust growth on a QoQ basis. Advertisement and commerce will also grow on QoQ basis. For advertisement, although the summer season is a slow season, with the coming of the, Thanksgiving holidays in September, we expect advertisers to increase their advertising budget, and there will be growing demand for gift, which will drive our top line growth.
In Q3, we're going to test the Friends Tab, the Bizboard on the Friends Tab, and we will be able to see some revenue stream coming through from Q4. Thank you. This brings us to the end of Kakao's Q2 2022 earnings presentation. Thank you.