4by4 Reduces Operating Losses Year-on-Year... 'Continued Structural Improvement'

Operating Loss of 2.6 Billion KRW in Q1, Down from 4.8 Billion KRW Last Year
Profitability Improvement Underway Through Cost Reduction and Restructuring

On May 15, content artificial intelligence (AI) solutions company 4by4 announced that it recorded sales of 6.78 billion KRW in the first quarter of this year. This represents a decrease of approximately 32% compared to the same period last year. The operating loss for the first quarter was 2.6 billion KRW, which is a reduction in the deficit compared to the 4.8 billion KRW loss in the first quarter of last year.

A 4by4 representative explained, "This is the result of actively reducing costs and initiating restructuring efforts since the end of last year," and added, "The scale of operating losses has been decreasing every quarter."

Yoon Junho, CEO of 4by4, who has recently implemented strong cost-cutting measures, stated, "Following a company-wide organizational restructuring, this year we are re-examining the overall cost structure and streamlining each cost item." He further emphasized, "Recovering sales is also a crucial pillar, so we are simultaneously pursuing growth strategies without any gaps."

SBXG, a subsidiary operating an e-sports team, achieved its highest-ever quarterly performance in the first quarter of this year. This had a positive impact on 4by4's first-quarter results. The improvement in SBXG's performance has served as an opportunity for 4by4, the parent company, to mitigate the risk of subsidiary losses and accelerate efforts to improve overall profitability.

In the first quarter, SBXG recorded sales of 4.01 billion KRW and an operating profit of 270 million KRW. Operating profit turned positive compared to the same period last year.

A 4by4 representative stated, "We are aggressively pursuing multifaceted efficiency improvements in our profit structure at the company-wide level, including personnel, organization, and strategy," and added, "With the strong performance of our subsidiary SBXG and the expected full-scale sales from the AI solutions business division, we will strive to achieve tangible improvements in performance as quickly as possible."