[Public Notice+] Omnitel "Operating Profit of 2 Billion Won Last Year... Expecting to Escape Management Item Status"

[Asia Economy Reporter Hyunseok Yoo] Omnitel announced on the 18th through a public disclosure that its sales in 2019 recorded 7.7 billion KRW, a 48% increase compared to the previous year. Operating profit turned from a loss of 1.4 billion KRW to a profit of 2 billion KRW. Additionally, during the same period, gross profit increased by 51% year-on-year to 4.1 billion KRW, and net income for the period was 1.9 billion KRW.

The company consistently generated operating profits each quarter through an operating strategy focused on profitability along with an increase in transaction volume in its core business area of mobile coupons. An Omnitel representative explained, “Following the decision by relevant authorities that revenue must be recognized after the five-year statute of limitations for unredeemed mobile coupons whose validity period has expired, we focused on B2B sales of mobile coupons used for corporate promotions, resulting in expanded sales and improved profitability.”

Looking at sales by segment, service sales related to B2C sales remained unchanged at 3.8 billion KRW compared to the previous year. In contrast, mobile gift certificate sales, which correspond to B2B sales, grew 178% year-on-year to 3.9 billion KRW.

Omnitel expects that the designation as a management item will be lifted once the operating profit turnaround is confirmed based on the audit report submission disclosure, which must be submitted at least one week before the date of the regular shareholders’ meeting.