Hecto Financial Reports Operating Profit of 4.1 Billion KRW in Q3, Up 9% YoY

Global fintech company Hecto Financial announced on the 7th through a preliminary earnings report that it recorded consolidated third-quarter results of ▲revenue of 39.4 billion KRW ▲operating profit of 4.1 billion KRW ▲net profit of 4.0 billion KRW.

Revenue slightly decreased by 0.6% compared to the previous year. However, operating profit increased by 8.6%, achieving an operating margin of 10.5%, highlighting improved profitability. On a separate basis, the company recorded ▲revenue of 35.8 billion KRW ▲operating profit of 4.6 billion KRW ▲net profit of 4.9 billion KRW, with operating profit and net profit increasing by 9.0% and 24.9% respectively compared to the previous year.

The growth in operating profit is the result of expanding the proportion of high-margin payment method services and efforts to reduce selling and administrative expenses through cost efficiency. Along with the growth in operating profit, net profit on a separate basis also grew significantly thanks to increased revenue from the global customer-tailored PG payment integration settlement solution 'MAMS (Master Account Management Solution)'.

Choi Jong-won, CEO of Hecto Financial, said, “Following the first half, we maintained an excellent profitability improvement trend in the third quarter and have achieved meaningful results in the overseas settlement business that has been underway since last year,” adding, “We will take a step further by proactively responding to new business opportunities such as expanding the proportion of high-margin payment methods and the amendment of the Electronic Financial Transactions Act.”

Meanwhile, Hecto Financial is the number one domestic company in account-based payment services and the only fintech company in Korea that owns the source of all payment methods. It focuses on providing PG services for major payment methods including simple cash payments, credit cards, and mobile payments, as well as overseas settlement services.

With its ability to handle large volumes of account traffic and offer various payment methods, the company is discovering new opportunities in response to the enforcement of the amended Electronic Financial Transactions Act, which includes strengthened supervision of prepaid charging funds and mandatory PG registration for main merchants, as well as demands for stability in settlement functions of domestic platform companies.