Dunamu, whose earnings surprise is expected this year, operates Upbit, the largest cryptocurrency exchange in Korea. Upbit is currently recording traffic and transaction volume over the fourth quarter of 2017.
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Kakao directly or indirectly owns about 23% of Doonamu. Equity-method gains reflected from Doonamu in the fourth quarter of 2017 amounted to KRW 29 billion. If the cryptocurrency craze remains at the current level, it is expected to contribute more than 100 billion won in equity-method gains this year. Kim Chang-kwon, a researcher at Mirae Asset Daewoo, said, “After the global cryptocurrency exchange Coinbase’s listing on Nasdaq, revaluation of the equity value is expected.”
Here, the steep earnings indicators of Kakao Pay, Kakao Bank, and Piccoma in 1Q are expected to be confirmed. Earnings momentum of growth divisions such as Biz Board and Commerce continues in 1Q. With the addition of a shopping tab, transaction volume is expected to increase in earnest.
Unique users of Kakao Bank App and Kakao Pay App, leading indicators of earnings, increased sharply in January and February as well. Japan’s webtoum service Piccoma’s transaction volume is expected to increase by 304% YoY in the first quarter as well. Researcher Chang-kwon Kim predicted that “the first quarter sales and operating profit will increase 46.3% and 76.9% compared to the same period last year.”
Kakao will be suspended for three days from April 12th to April 14th with a one-fifth par. The transaction resumes from the 15th. Kakao Pay is expected to go public in the first half of this year, and Kakao Bank is expected to go public in the second half of this year. In addition, Kakao Entertainment and Kakao Japan are set to go public next year.