HectoFinancial Reports 150 Billion KRW in Revenue for 2023... "All-Time High"

Global fintech company Hecto Financial recorded its highest performance ever by surpassing annual sales of 150 billion KRW since its founding.

On the 12th, Hecto Financial disclosed its 2023 performance through a notice of shareholders' meeting. According to the announcement, Hecto Financial's consolidated sales for 2023 reached 153.1 billion KRW, an 18.4% increase compared to the previous year, achieving the highest performance in its history. On a separate basis, sales also grew by 15.4% year-on-year, recording a record high of 140.4 billion KRW.

Last year, Hecto Financial's sales growth was driven by its PG (Payment Gateway) business. The expansion of large merchants such as global e-commerce platforms and entry into the offline market through kiosks resulted in PG service sales growing by 49% compared to the previous year.

During the same period, consolidated operating profit decreased by 2.1% year-on-year to 12.6 billion KRW due to the inclusion of costs related to the acquisition of Hecto Data in Q4 2022. However, on a separate basis, operating profit increased by approximately 11.6% year-on-year to 15.8 billion KRW, marking the highest separate operating profit since the company's establishment.

Meanwhile, the agenda of the shareholders' meeting included a plan for a cash dividend of 350 KRW per share for the 2023 fiscal year. Recently, Hecto Financial established and announced a four-year shareholder return plan to ensure consistency in shareholder return policies and predictability for investors.

Since its listing on KOSDAQ in 2019, Hecto Financial has achieved a compound annual growth rate (CAGR) of 18.5% in sales and continues to actively execute new investments while implementing cash dividends every year. Starting this year, Hecto Financial plans to increase its annual dividend payout ratio by more than 1% each year over the next four years, aiming for a payout ratio of over 25%.

Choi Jong-won, CEO of Hecto Financial, stated, “Hecto Financial will realize external growth and profit increase through stable growth of its existing payment business and active global business promotion such as collaboration with global e-commerce and fintech platforms. We also plan to enhance shareholder value along with corporate value growth.”

Hecto Financial is the number one account-based payment service company in South Korea. It is a techfin company that owns the core technology for all payments, providing one-stop services from PG payment services to overseas settlement for major payment methods including simple cash payments, credit cards, and mobile phone payments.