EcoMarketing, Why the Second Quarter Is More Promising Than the First Quarter

[Asia Economy Reporter Yoo Hyun-seok] There are expectations that Ecomarketing's performance will improve starting from the second quarter. It is analyzed that growth will appear due to entering the peak season.

On the 11th, Samsung Securities forecast that Ecomarketing's sales and operating profit in the first quarter will reach 42 billion KRW and 10.4 billion KRW, respectively, marking increases of 42.1% and 31.2% compared to the same period last year. This falls short of the operating profit consensus of 13.7 billion KRW.

Choi Min-ha, a researcher at Samsung Securities, said, "The quarter corresponded to the off-season for sales of the industries operated by major advertisers and hit items (Cluck, Mongje, etc.) of the subsidiary Daily&Co," adding, "It is estimated that CPS advertisers conducted more passive marketing activities in the first quarter than initially expected."

However, it is expected that the performance growth trend will continue from the second quarter. This is due to performance improvement from entering the peak season. Researcher Choi emphasized, "The headquarters is accelerating marketing activities as the product lines of major advertisers enter the peak season, and the performance related to Andar, which was recruited as an advertiser through a share exchange between the two companies' CEOs at the end of last year, will also increase."

In addition, Daily&Co is also expected to contribute. He explained, "Daily&Co plans to launch a new brand in the second quarter, and related results could act as an upside for the second half's performance. The global beauty platform Vanity Table operated by Daily&Co is also showing a clear growth trend, having already secured 270,000 overseas customers, and its recent average monthly sales have risen to around 3 billion KRW. Overseas sales growth is expected to accelerate this year."

Samsung Securities expects Ecomarketing's sales and operating profit this year to reach 224 billion KRW and 71 billion KRW, respectively. He said, "Considering the headquarters' marketing capabilities, sales booster model, subsidiary's existing and new brands, and the expanding trend of D2C platform performance, growth potential will be further strengthened."