Daekyo Turns to Profit in Q1... "Cost Efficiency and Focus on Core Businesses Drive Results"

Sales of 165.7 Billion KRW and Operating Profit of 900 Million KRW Recorded
Impact from Exclusion of One-Off Costs Such as Advertising
"Continuing the Trend by Focusing on Education and Senior Businesses"

Daekyo announced on May 9 that it recorded sales of 165.7 billion KRW and an operating profit of 900 million KRW in the first quarter of this year.

Sales increased by 0.1% from 165.5 billion KRW in the same period last year, and operating profit turned to positive from an operating loss of 800 million KRW in the same period last year.

Net profit for the period was 200 million KRW, down 98.5% from 13.4 billion KRW in the first quarter of last year, but the company avoided a net loss.

Daekyo stated, "Through cost efficiency measures and a strategy of focusing on core businesses, we succeeded in turning both consolidated and separate operating profit into the black," and added, "Profitability improved as one-off costs such as membership fee increases, enhancement of premium learning services, expansion of courses for middle school students, and new product advertising were excluded."

Daekyo plans to continue its performance improvement trend in the second quarter by strengthening the profit base of its education business through the expansion of specialized classes for young children and the 'Daekyo High Campus' learning centers for middle school students. In the senior learning segment, the company aims to enhance competitiveness by launching new content and will actively promote service expansion by utilizing its nationwide network of Noonnoppi teachers.

Daekyo New Life currently operates 75 home care centers nationwide, with 52 located in the Seoul metropolitan area, giving it the largest home care center network in the region.

A Daekyo representative explained, "In the second quarter, we plan to focus on improving the operational efficiency of newly acquired centers and further solidify our leadership in the senior market."