Incross, 3Q Operating Profit Down 0.9% YoY... Media Rep Handling Volume Hits Record High for 3rd Quarter

[Asia Economy Reporter Oh Su-yeon] Incross, SK Group's digital advertising specialist, announced its preliminary Q3 2022 earnings on the 2nd, reporting consolidated sales of 13.945 billion KRW and operating profit of 6.015 billion KRW.

Compared to the same period last year, sales increased by 6.6%, while operating profit decreased by 0.9%.

On a separate basis for Q3, sales amounted to 12.902 billion KRW and operating profit was 6.149 billion KRW, up 5.4% and 1.9% respectively from the same period last year.

The media rep business segment recorded a handled volume of 114.686 billion KRW in Q3, a 7.9% increase year-on-year, marking the highest handled volume ever for a third quarter. Increased digital advertising from key advertisers in gaming, e-commerce, finance, and telecommunications sectors, along with steady demand growth for performance advertising, positively impacted the media rep business results.

The T Deal business segment focused on expanding various promotional events and product sourcing to enhance customer benefits and convenience, resulting in a Q3 transaction amount of 36.959 billion KRW and sales of 1.872 billion KRW, setting a new quarterly record. These figures represent increases of 55.4% and 30.5% respectively compared to Q3 last year.

Incross plans to continue T Deal's growth momentum by enhancing brand awareness through diverse marketing activities and strengthening product recommendation logic via advanced curation.

Meanwhile, in July, Incross announced plans to accelerate growth through synergies with its performance and search advertising subsidiary Mindknock and ad tech subsidiary Solution. The company also explained that it is exploring additional growth drivers, including preparing to enter the online video service (OTT) advertising market, which has recently attracted industry attention.

Lee Jae-won, CEO of Incross, stated, “Following the previous quarter, sales in our key businesses showed stable growth in Q3, with T Deal achieving double-digit growth in both transaction amount and sales compared to the same period last year and the previous quarter. As Q4 is the peak season and a critical period determining annual performance, we will do our best to deliver business results that meet market expectations.”