Aton Posts Cumulative Q3 Sales of 20.8 Billion Won... 'Holding Up Well' Despite COVID-19

[Asia Economy Reporter Jang Hyowon] Fintech security company Aton announced on the 13th that it recorded cumulative sales of 20.8 billion KRW and an operating profit of 900 million KRW on a consolidated basis for the third quarter. These figures represent decreases of 12% and 65%, respectively, compared to the same period last year.

The third quarter was the period most affected by the novel coronavirus disease (COVID-19), with the prolonged severe downturn in the domestic and international travel and tourism industries inevitably impacting the demand for T-money solutions and smart finance.

Additionally, operating losses occurred due to temporary investment costs reflected from improvements in data infrastructure for MyData business partnerships of consolidated subsidiaries and development expenses for SaaS-based authentication solutions as part of new business initiatives. This is analyzed as an indispensable investment activity to respond to the rapidly changing fintech market and secure future growth engines.

However, sales in the fintech platform sector increased by 32% compared to the same period last year, maintaining a solid growth trend, indicating stable profit generation in the core business. In particular, it is expected that once the enforcement decree of the revised Electronic Signature Act takes effect in December, demand for private certificates in non-face-to-face services such as online insurance subscription and contracts will significantly increase, not only in public and financial sectors.

Aton’s strategy is to continue promoting growth in future growth businesses while maintaining a stable performance improvement trend through platform business revitalization by expanding PASS certificate partnerships and efforts to realize sales of new solutions.

An Aton official stated, “We expect the results of proactive investments made for future growth, including new business initiatives and development investments driven by the digital transformation trend across society, to begin bearing fruit from the first half of next year,” adding, “We will monitor market changes such as the expansion of the private certification market for electronic signatures to secure business stability and continue activities to enhance corporate value.”