Q2 Operating Profit 8.7 Billion KRW... 186% Increase YoY
105 Billion KRW Raised for XR New Business Operating Funds
Gaon Broadband, National Project Related to Essential Metaverse Infrastructure
[Asia Economy Reporter Hyungsoo Park] Gaon Media's stock price is soaring. The strong performance in the second quarter, along with expectations for business divisions applicable to the metaverse industry, including mixed reality (XR), which is being promoted as a future growth engine, appear to have influenced the stock price.
At 9:09 a.m. on the 29th, Gaon Media was trading at 14,450 KRW, up 14.68% from the previous day.
The day before, Gaon Media announced that its consolidated preliminary operating profit for the second quarter of this year reached 8.7 billion KRW, a 186% increase compared to the same period last year. Sales during the same period rose 12% to 139.3 billion KRW. For the first half of the year, cumulative sales were 260.8 billion KRW, and operating profit was 15.8 billion KRW. This is the second-largest half-year operating profit since the first half of 2019. The company expects to continue this trend in the second half of the year and break the record for the highest annual performance.
Gaon Media is newly promoting its XR business division. Last month, it issued convertible bonds to raise 10.5 billion KRW for new business promotion. Gaon Media did not allocate a specific use for the raised funds but classified them primarily as operating funds for the XR new business. A Gaon Media representative explained, "Because the scale of government projects related to the Metaverse is large and the market outlook is very bright, we successfully issued perpetual bonds without major difficulties."
After the earnings announcement, a Gaon Media official stated, "Despite unstable domestic and international market conditions, we actively pushed forward with business, and achieving the highest performance in history this year is within sight. We plan to accelerate efforts to produce results in the XR business sector, which is being promoted as a new business, within this year."
It was also noted as a positive factor that the subsidiary Gaon Broadband aims to list on the KOSDAQ market next year. Gaon Broadband, a network solution specialist company, recently decided to participate in the ‘10 Giga Internet Activation Promotion Project’ led by the Ministry of Science and ICT and promoted by the National Information Society Agency (NIA). They will develop Wi-Fi 6E equipment and enhance solutions.
This project involves proactively responding to the rapidly evolving network environment by developing domestic 10-gigabit-class equipment, building infrastructure, and discovering application service models. The 10-gigabit internet service offers speeds up to 10 times faster than existing gigabit internet.
A consortium led by SK Broadband will carry out the project until the end of this year. Gaon Broadband is responsible for developing Wi-Fi 6E wireless routers (AP) and plans to enhance and install its proprietary remote network management solution KRMS (Kaon Remote Management System).
Wi-Fi 6E is a standard that expands the frequency band of the latest Wi-Fi standard Wi-Fi 6 to 6 GHz. Its maximum transmission speed per second is at least twice as fast as existing Wi-Fi. It is essential infrastructure for real-time transmission of large-capacity data such as augmented reality (AR) and virtual reality (VR) technologies that make up the Metaverse.
Gaon Broadband has selected Mirae Asset Daewoo as the lead underwriter and is pursuing an initial public offering (IPO) aiming for a KOSDAQ listing next year. As Maxst, a new metaverse stock, continued a sharp rally after listing, attention has also focused on Gaon Broadband's listing.
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