[Asia Economy Reporter Hyunseok Yoo] THQ (The HQ) succeeded in increasing sales and turning operating profit positive in the first quarter, and recorded a high triple-digit sales growth rate in the second quarter as well.
THQ announced on the 13th that its second-quarter sales reached 8.4 billion KRW, up 162.8% compared to the same period last year. Operating profit during the same period was 1.9 billion KRW, continuing a positive earnings trend for the second consecutive quarter.
Growth for the half-year period is also remarkable. Half-year sales recorded 13.4 billion KRW, a 110.8% increase compared to the same period last year. Operating profit during the same period turned positive, recording 2.8 billion KRW in profit compared to a 4 billion KRW loss the previous year.
This performance growth is attributed to the balanced growth of the business portfolio, including the antenna business and IP (Inbound Platform) business. In particular, despite a decrease in the number of customers visiting duty-free shops, the IP business, which was hit hard by COVID-19, is rapidly recovering due to a significant increase in unit purchasing power. THQ’s cumulative sales of the IP business division in the first half reached 5.2 billion KRW, expanding 333.4% compared to the same period last year.
The antenna division is also continuously increasing its antenna supply share through the three major domestic mobile carriers. Along with expansion in the U.S. market, it is actively entering new global markets such as Canada, Japan, and Europe.
After establishing a local subsidiary in the U.S., THQ has been continuously promoting antenna development and product certification for the past five years, and the results are showing. By establishing itself as a key supplier of small cell antennas in the U.S. market, it has driven sales growth. Currently, the supply of small cell antennas to AT&T, the largest telecommunications company in the U.S., is expanding.
The newly expanded duty-free business in Hainan, China, established as a new growth engine this year, is progressing smoothly and officially started operations after the second half of the year. As business results are expected to become visible accordingly, a steep growth trend in performance is anticipated to continue after the second half. THQ, as an early entrant into the rapidly emerging Hainan duty-free market, has already secured a business foundation by establishing a local subsidiary in China and placing 22 well-known Korean brands in the Hainan Haiyou Duty-Free Shop, attracting industry attention with its swift response.
A company official explained, “Thanks to the global market expansion of the antenna business and the recovery of the IP business, we have already achieved last year’s sales and are continuing a two-quarter consecutive profit streak. Along with stable growth in existing businesses, corporate value is expected to further improve in the second half through business diversification such as overseas duty-free business.”
He added, “In particular, as domestic duty-free shops are turning their attention to overseas markets such as the Chinese duty-free market as a new source of revenue after COVID-19, meaningful results are expected from THQ’s Hainan overseas duty-free business, which will add momentum to performance growth in the second half.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
