BusinessOn Projects Operating Profit of 9.5 Billion Won This Year... 73% Increase YoY

Achieving External Growth and Stable Profits through M&A

[Asia Economy Reporter Minwoo Lee] BusinessOn is expected to record an operating profit of 9.5 billion KRW on a consolidated basis this year, showing growth of over 70% compared to the same period last year. It is analyzed that the company will grow its scale through mergers and acquisitions (M&A) and achieve stable profits.

On the 7th, Eugene Investment & Securities forecasted that BusinessOn will achieve consolidated sales of 32.8 billion KRW and an operating profit of 9.5 billion KRW this year. They anticipated strong performance with increases of 78.0% and 73.1%, respectively, compared to the same period last year.

The continuous M&A activities since last year were evaluated as effective. Earlier, BusinessOn acquired Nudge Partners for 10.2 billion KRW in February, integrating existing sales and purchase data expense processing and electronic approval services, and building an integrated platform capable of handling tax tasks as well. They plan to gradually expand the transition centered on about 400 client companies.

Researcher Jongseon Park of Eugene Investment & Securities said, "In addition to linkage construction fees, platform maintenance and usage fees are collected, so stable performance growth is expected along with adoption expansion." He added, "Sales of the electronic contract service 'SmartBill' are expected to increase by 33.6% this year to 15.2 billion KRW compared to last year, and it is expected to grow annually by 15-20% going forward."

He also emphasized the importance of Plait Partners (acquired in November 2020) and Glosign (acquired in July 2020) acquired last year. By acquiring Plait Partners for 27 billion KRW, it is analyzed that the business can expand from Market Intelligence (MI) to Business Intelligence (BI) operations. Researcher Park explained, "While MI is a solution that provides real-time big data analysis services based on collected data, BI offers advanced analysis and visualization services, so synergy effects are expected." He added, "Big data business sales are expected to increase from 5.4 billion KRW last year to 14.4 billion KRW this year."

Along with this, through the acquisition of Glosign, it is anticipated that the company will increase its market share in the corporate electronic contract service market based on ease of installation and low costs.