FSN Reports Q1 Operating Profit of 4.1 Billion KRW... "Achieves Highest-Ever Quarterly Results"

FSN announced on May 16 that it achieved its highest-ever first quarter results since its founding, despite the seasonal off-peak period in the advertising and commerce industries. This was driven by the rapid growth of its brand business division, led by its subsidiary Boosters. Analysts expect that even greater performance growth is possible starting in the second quarter, when both the brand and advertising divisions enter their peak seasons.

FSN disclosed that, on a consolidated basis for the first quarter of 2025, it recorded revenue of 86.3 billion KRW, operating profit of 4.1 billion KRW, and EBITDA of 6.3 billion KRW. Revenue increased by nearly 125% compared to the same period last year, and the company returned to profitability in terms of operating profit. Excluding the results of Hypercorporation and tech affiliates, which are being operated separately by business, FSN's performance amounted to 67.7 billion KRW in revenue and 7.3 billion KRW in operating profit.

The main driver behind FSN's record-breaking performance was the brand division, led by Boosters. In the first quarter alone, Boosters achieved revenue of 42.7 billion KRW and operating profit of 10.1 billion KRW, delivering an earnings surprise. Not only did revenue grow by 382% year-on-year, but operating profit also showed overwhelming growth. Although the first quarter is typically considered the off-season for the advertising and commerce industries, Boosters achieved its highest-ever first quarter results.

The growth trend is expected to accelerate further from the second quarter, as most partner brands enter their peak season. From April onward, major consumers of each brand are increasingly engaging in outdoor activities. In addition, this year, unusually high temperatures have become more frequent since May, and heatwaves comparable to last year are expected to continue throughout the summer.

FSN's core advertising and marketing business division, as well as its platform business division, which is considered a new cash cow, are also performing as expected. Despite the downturn in the advertising industry, FSN ranked fifth overall in the 2024 Advertising Agency Status Survey announced by the Korea Advertising Agencies Association, recording a transaction volume of 569.3 billion KRW, a 30% increase compared to the previous year.

Seo Jeonggyo and Park Taesoon, co-CEOs of FSN, stated, "Thanks to the strong performance of our partner brands and our ongoing efforts to improve business efficiency, we achieved not only a return to profitability in the first quarter, which is typically considered the off-season, but also our best results in four years." They emphasized, "We will do our utmost to further strengthen our competitiveness in the global market through sustainable growth and to ensure that our undervalued corporate value is properly recognized, based on our completely improved business structure."