FSN Reports 86.7 Billion KRW in 3Q Sales: "Full-Scale Turnaround"

FSN, a KOSDAQ-listed company, announced that its consolidated sales for the third quarter reached 86.7 billion KRW, marking a 74% growth compared to the same period last year. Achieving its highest quarterly sales ever, FSN also succeeded in turning a profit with an operating income of 2.9 billion KRW. The cumulative sales amounted to 182.5 billion KRW, surpassing last year’s annual sales within just three quarters.

FSN has built a business structure that supports and collaborates for mutual growth with competitive brands and platforms, based on its core competencies in advertising marketing. The new tech business based on life AI solutions is operated separately from FSN, centered on Hyper Corporation. This separation maximizes the expertise and efficiency of each entity. In fact, through this evolving business structure, the accelerating business led by FSN has achieved continuous growth and profitable management.

Despite the ongoing economic downturn, the advertising marketing (client business) segment achieved performance growth through efforts to integrate and streamline the advertising business division, recording 20.4 billion KRW in sales and 1.9 billion KRW in operating income in the third quarter. Adqua Interactive, FSN’s core advertising subsidiary, is actively entering the generative AI advertising market through its dedicated AI department, 'Aidea Lab.' Recently, the food franchise brand advertisement featuring Chef An Seongjae as a model has gained significant popularity in the market, further recognizing FSN’s creativity capabilities.

The brand and platform accelerating business division has established itself as a core business segment by achieving an earnings surprise. Boosterz, which leads this business, recorded cumulative sales of 63.7 billion KRW and operating income of 7.6 billion KRW in the third quarter. Along with the highest quarterly performance ever, it has also early surpassed its highest annual sales record.

The platform segment is also experiencing a surge in new member sign-ups for 'Daedamo,' a hair loss medical community that produces and broadcasts 100% generative AI advertisements. 'MyOnePick,' a K-pop fandom platform operated by Doohub, has been selected as the official voting app for major music intellectual properties (IP), resulting in a rapid increase in monthly active users (MAU).

Starting as a digital advertising marketing company alliance, FSN has transformed from a business structure centered on advertising agency services, which are highly affected by external economic conditions, into a business model that grows together with partner brands. Based on its core competency in advertising marketing, FSN supports and collaborates with brands and platforms and even makes equity investments, viewing this brand co-growth business as a future growth engine.

In the third quarter, this core business accounted for 61% of FSN’s sales excluding Hyper Corporation and tech affiliates. This proves that FSN has fundamentally transformed into a company that supports the growth of brands and platforms based on advertising marketing capabilities rather than focusing solely on advertising agency services. Even in difficult times, FSN maintained steady sales and competitiveness in the advertising marketing business, achieving results through a business model that grows alongside competitive small and medium manufacturers and startups.

Surpassing last year’s annual sales within just three quarters has laid the foundation to achieve the highest annual sales since the company’s founding. A shoe brand closely collaborating with Boosterz recently recorded the highest sales in the 2024 fashion category during Naver Shopping Brand Day. In their first home shopping broadcasts on CJ OnStyle and Lotte Home Shopping, they sold out quantities exceeding targets well before the end of the broadcasts, continuing explosive growth in the domestic market.

With plans to enter the global market starting with Japan, further growth is anticipated. Additionally, as partnership requests from various promising brands flood in, new partnerships in athleisure and natural light LED will be officially launched in the fourth quarter, and the growth momentum of the advertising marketing and platform businesses is expected to continue.

Seojeonggyo, CEO of FSN, stated, "FSN has continuously developed its accelerating business that grows together with competitive brands and shares the fruits of success, based on its core competencies and know-how in advertising marketing." He added, "We successfully completed management efficiency improvements in preparation for the economic downturn, achieving record-high quarterly performance despite the recession." He further expressed, "We expect to achieve good results in the fourth quarter across brand, client, and platform accelerating businesses."