THQ, Three Consecutive Quarters of Profit... "Steep Growth to Continue"

[Asia Economy Reporter Yoo Hyun-seok] THQ (The HQ, formerly Gamma Nu) announced on the 10th that its third-quarter sales reached 7.02 billion KRW, a 100.5% increase compared to the same period last year. Operating profit for the same period recorded 1.11 billion KRW, marking a third consecutive quarter of profitability.

On a cumulative basis for the third quarter, sales reached 20.45 billion KRW, a 107.1% increase compared to the same period last year. Operating profit for the same period was 3.94 billion KRW.

The growth in performance is attributed to the recovery of domestic duty-free sales (IP business) along with the growth of the antenna division. In particular, sales of the IP (Inbound Platform) business have rapidly recovered to 70-80% of pre-COVID-19 levels, achieving monthly average purchase performance exceeding 130 billion KRW since the second quarter. Based on this, passenger referral fees have also maintained a stable level, driving sales growth.

The antenna division continues to see increasing sales of outdoor small cell 5G antennas for AT&T, the largest telecommunications company in the United States. As of the end of September, export performance reached 4 billion KRW. Additionally, sales of 5G antennas for the Japanese market have also occurred. Moving forward, the company plans to participate in certification tests and bidding to discover new overseas customers in Canada, Europe, and expand its global market.

Recently, following investments in 5G in the metropolitan and major cities in Korea, plans are underway to invest in nationwide network installation including rural areas such as eup, myeon, and dong in 2022. Accordingly, THQ’s demand for 5G antennas is expected to increase further from the fourth quarter.

A company official stated, “Thanks to the balanced growth of the existing antenna business and IP business, we are continuing a steep growth trend for the third consecutive quarter. The newly expanded duty-free business in Hainan, China, which was established as a new growth engine this year, is also progressing smoothly. With the upcoming ‘Guanggunje’ on the 11th, China’s largest shopping period, we expect to achieve visible results through aggressive marketing activities.”