Cheil Worldwide Reports Operating Profit of 88 Billion KRW in Q2, Up 22.1% YoY (Comprehensive)

Digital Business Grows 29% Compared to First Half of Last Year

[Asia Economy Reporter Lim Chun-han] Cheil Worldwide announced on the 28th that its consolidated operating profit for the second quarter of this year was tentatively estimated at 88 billion KRW, a 22.1% increase compared to the same period last year. Sales reached 976.4 billion KRW, up 23.59% year-on-year. Net profit increased by 11.22% to 61.3 billion KRW.

The digital business grew by 29% compared to the first half of last year due to increased volume in dot-com platforms, data, e-commerce, and digital content production across domestic and international regions. The proportion of the digital business in overall performance expanded from 50% for the entire last year to 52% in the first half of this year. In particular, the increase in agency volume from major digital subsidiaries such as Pungtai and Bavarian, digital content production in North America, and digital growth in emerging markets such as Southeast Asia, Latin America, and India led the expansion of the digital business.

The overseas business accounted for 76% in the first half of this year. In North America, the company achieved 58% growth compared to the first half of the previous year, driven by expanded agency services for major advertisers and increased large-scale non-affiliated volume from subsidiaries such as McKinney and Bavarian. Additionally, double-digit growth continued across all overseas regions, including increased below-the-line (BTL) advertising volume such as exhibitions in Europe due to the easing of COVID-19, and increased digital media executions in China.

Cheil Worldwide plans to continue growth by service and region in the second half of the year to achieve its goal of double-digit growth in gross profit set at the beginning of the year. Furthermore, in the second half, the company will actively pursue mergers and acquisitions (M&A) in digital fields such as metaverse-oriented immersive content production and performance marketing in regions including North America and Europe, and will continue investing in excellent domestic and international companies with digital content facilities and specialized capabilities in areas such as virtual production.