[Click eStock] "Incross Expected to Benefit from OTT Advertising Pricing Plan Introduction"

SK Securities analyzed on the 9th that Incross is expected to benefit from the introduction of OTT (Over-The-Top) video service advertising pricing plans. No investment opinion or target price was provided.

Incross recorded sales of 12.2 billion KRW and operating profit of 3.4 billion KRW in the second quarter, representing decreases of 3.1% and 28.7% respectively compared to the same period last year. Na Seung-du, a researcher at SK Securities, evaluated, "Considering that the advertising handling volume significantly increased compared to the end of last year amid advertisers' conservative and efficient advertising expenditure trend this year, the performance was relatively solid."

He identified Incross's T deal business as the main contributor to the solid performance. He said, "The T deal, which is operated on consignment, is steadily growing," and forecasted, "In the second half of the year, the growth trend will continue steadily with sourcing of famous brand products and the introduction of a direct product purchase system."

He especially expected benefits from the introduction of OTT advertising pricing plans. He stated, "As discussions on the expansion and restructuring of advertising pricing plans by video content platforms including OTT continue, interest in the video advertising business is increasing," and added, "Incross has experience operating domestic and international CTV (Connected TV) and OTT platform video advertising businesses through its video ad network Darwin." He further noted, "Since the expansion of OTT advertising pricing plans is widely regarded as an inevitable step, it is reasonable to expect direct benefits from the introduction of such pricing plans."