KT Group Digital Marketing Platform Company Nasmedia
Q2 Revenue 35.9 Billion KRW... 1.4% Increase YoY
"Strong Performance Despite Industry Downturn Due to OTT-Driven Advertising"
Nasmedia, a digital marketing platform company under KT Group, announced on the 12th that its consolidated operating profit for the second quarter of this year reached 6.6 billion KRW, a 41% increase compared to the same period last year. Revenue rose 1.4% to 35.9 billion KRW during the same period.
On a separate basis, second-quarter revenue was 26 billion KRW, and operating profit was 5.9 billion KRW.
Nasmedia stated that despite advertisers reducing their advertising budgets due to the ongoing domestic and international economic downturn since last year, it expanded advertising toward online video services (OTT), secured advertising contracts from Chinese commerce platform companies, and grew its digital out-of-home (DOOH) advertising business. The company raised its digital advertising business revenue to approximately 25.1 billion KRW, an increase of more than 10% compared to the same period last year.
The digital out-of-home advertising business segment saw about a 61% increase in revenue year-on-year, driven by increased advertising executions from major advertisers, including those in the food and beverage industry. The revenue growth of 'N-Square,' a digital out-of-home advertising product operated directly by Nasmedia within subway stations, also contributed to improved profitability.
On the other hand, due to marketing cost controls by major advertisers such as those in the gaming sector and intensified competition in the commerce business, the platform business segment’s revenue declined 14.5% year-on-year to 10.8 billion KRW.
Last month, Nasmedia was exclusively selected as the priority partner for Gmarket’s closed beta test (CBT) for advertising and plans to launch an advertising platform (SSP) based on a Google MCM partnership.
Nasmedia plans to continue investing in AI and data technology development to strengthen its mobile advertising platform capabilities and expand its business. Based on this, it aims to improve the platform business segment’s performance in the second half of the year. The company also intends to actively expand its digital out-of-home advertising business in line with regulatory easing and digitalization of the out-of-home advertising market.
Park Pyeong-gwon, CEO of Nasmedia, said, "Despite the ongoing economic downturn and sluggish market conditions, the expansion of OTT-related transactions and growth in digital out-of-home advertising using our own media were key achievements in the second quarter. In the second half, with major Netflix productions being released, interest in OTT advertising is expected to increase, and the newly launched SSP business is anticipated to become a new growth engine."
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