Cheil Worldwide Reports Q3 Operating Profit of 59.4 Billion KRW, Up 13% Year-on-Year

[Asia Economy Reporter Lee Seung-jin] Cheil Worldwide's operating profit increased despite the advertising market downturn caused by the novel coronavirus (COVID-19), due to factors such as labor cost reductions.

Cheil Worldwide announced on the 20th that its operating profit for the third and fourth quarters of this year was 59.4 billion KRW, a 13% increase compared to the same period last year. During the same period, sales decreased by 5.8 billion KRW (2%) to 278.4 billion KRW.

However, despite the decrease in sales, operating profit increased due to reductions in selling and administrative expenses such as labor costs. As of September this year, the total workforce was 6,578, a decrease of 570 compared to last year, resulting in a labor cost reduction of approximately 9 billion KRW. Selling and administrative expenses for the third quarter were 219 billion KRW, down 5% from the same period last year.

Additionally, securing a large number of new advertisers in the third quarter helped improve performance. During this period, Cheil Worldwide added more than 10 advertisers, including PayPal, Cetaphil (USA), and Xinzhou Rent-a-Car (China).

In September, Cheil Worldwide established a new subsidiary in New Zealand and plans to continue strengthening its overseas business in markets such as North America, China, and Southeast Asia.

A Cheil Worldwide official stated, “We will continue to promote efficiency in selling and administrative expenses and strengthen core businesses to achieve steady growth in operating profit in the second half of the year.”