"Innocean's Overseas Subsidiaries Show Strong Performance, 3Q Operating Profit 45.9 Billion KRW... Up 12% YoY"

Gross Profit Increased by 12.5% to 237.9 Billion KRW

Hyundai Motor Group's advertising affiliate Innocean announced on the 6th that it recorded an operating profit of 45.9 billion KRW for the third quarter on a consolidated basis, a 12.4% increase compared to the same period last year.

Gross profit increased by 12.5% year-on-year to 237.9 billion KRW, while net profit decreased by 24.5% to 32.6 billion KRW. Gross profit refers to the amount remaining after deducting the cost of sales from revenue. In the advertising industry, since production tends to increase in certain quarters, performance is measured based on gross profit rather than revenue.

Innocean stated that the improvement in performance was influenced by strong results from affiliate-centered campaigns (such as K8, EV3, Casper electric vehicles) and overseas markets. Regarding net profit, it explained that the decrease was due to normalization of corporate tax expenses and a reduction in non-operating income such as interest income compared to last year.

By region, the Americas and European markets showed double-digit revenue growth. The Americas recorded a gross profit of 133.6 billion KRW and an operating profit of 33.3 billion KRW, representing increases of 18% and 33% respectively compared to the same period last year. The European region recorded a gross profit of 27.8 billion KRW, up 12% during the same period, while operating profit decreased by 1% to 6.4 billion KRW.

In the domestic market, revenue increased by 2% to 49.9 billion KRW, reflecting secured volumes from affiliates and the performance of digital marketing subsidiary DPlan360. Operating profit decreased by 45% to 4 billion KRW.

Innocean's share of non-affiliate advertising expenses was 29% in the third quarter. During the third quarter, new advertisers such as Kyobo Life Insurance, Harim, Emart, KT, and Tous Les Jours were also secured.

Innocean plans to enhance corporate value and increase shareholder value through customer experience advancement, exploring mergers and acquisitions (M&A) investments, and expanding its integrated global network by establishing overseas bases until the end of the year.