Duzon Bizon Reports Q4 Revenue of 76.3 Billion KRW, Operating Profit Decreases to 7.6 Billion KRW

[Asia Economy Reporter Jang Hyowon] Duzon Bizon (CEO Kim Yongwoo) announced on the 3rd through its Q4 earnings disclosure that it recorded consolidated sales of 76.3 billion KRW and operating profit of 7.6 billion KRW. This represents a decrease in both sales and operating profit compared to the same period last year. For the entire last year, sales totaled 304.3 billion KRW and operating profit was 45.5 billion KRW.

Despite the disappointing results this quarter, the company explained that it is positive in that it showed solid order performance overcoming the overall IT investment contraction trend across industries due to the economic slowdown. The company stated that although sales growth was limited due to market downturn caused by COVID-19 and delays in implementation due to IT industry labor shortages, it was able to maintain sales slightly below the previous year through steady operational capabilities.

However, operating profit declined due to increased fixed costs such as personnel expenses and amortization related to new businesses, and net profit decreased as one-time expenses including equity method losses, intangible asset impairment losses, and goodwill amortization increased by approximately 7.6 billion KRW.

The company said the outlook is bright as factors for profitability expansion are clear. As corporate IT investment gradually recovers, deferred contracts are being signed again, and since most costs are fixed costs, sales increases will directly lead to operating profit growth. Additionally, by structurally adjusting costs such as payment fees and outsourcing service expenses, the company is confident that annual operating profit for 2023 will improve significantly.

In fact, this year, core businesses such as ERP 10, Amaranth 10, and WEHAGO are expected to grow evenly, leading sales expansion. Furthermore, through the establishment of a joint venture with Shinhan Bank, a corporate finance specialized platform business linked with financial infrastructure is set to officially launch, and as these achievements become visible, they are expected to support sales, raising expectations for a performance turnaround.

A representative from Duzon Bizon said, “As demand for enterprise solutions integrated into cloud SaaS expands, this year we expect to establish a new growth foundation based on a perfect SaaS Integration Platform.”