FSN: Boosters Surpasses Last Year's Operating Profit in Just 5 Months

Boosters, a subsidiary of the KOSDAQ-listed company FSN, surpassed its entire operating profit from last year in just five months.

On June 24, Boosters announced that from January to May this year, it achieved consolidated cumulative sales of 81.4 billion KRW and operating profit of 19 billion KRW. Compared to the same period last year, sales surged by 343%, and operating profit soared by 2,576%. While the average operating margin for advertising agencies typically ranges between 5% and 10%, Boosters recorded an operating margin of 23%. On a separate basis as well, the company exceeded last year's operating profit?which marked a turnaround into the black?in just five months. Last year’s operating profit was 14.7 billion KRW.

Unlike traditional advertising agencies that rely on one-off commissions, Boosters has established a co-growth business model by jointly investing equity and marketing costs in promising brands and sharing the fruits of their growth. This creates a virtuous cycle in which the growth of partner brands directly translates into revenue for Boosters.

Building on its success and know-how in the domestic market, Boosters is also actively supporting its partner brands in expanding into global markets. While most brands pursue overseas expansion by contracting with local vendors or trading companies, Boosters directly establishes and operates its own global online stores. The company also produces, executes, and manages local advertisements in-house. In addition, to tailor marketing strategies to the characteristics of each country, Boosters hires local advertising marketers, further advancing its global expansion efforts.

The adoption of artificial intelligence (AI) technology across all areas of advertising and marketing is also playing a key role in Boosters’ growth. Currently, Boosters utilizes data analytics-based AI to plan and produce the most effective advertising creatives for consumers, and to analyze and optimize campaign performance in real time. This maximizes the marketing efficiency of its partner brands.

With its core subsidiary Boosters achieving an earnings surprise, FSN is also gaining momentum in its performance growth. Despite the first quarter typically being a seasonal off-peak period for the advertising and commerce industries, FSN recorded sales of 86.3 billion KRW and operating profit of 4.1 billion KRW, marking its highest-ever results for the period. As Boosters’ annual targets for this year are 195.5 billion KRW in sales and 33 billion KRW in operating profit, FSN is now expected to achieve even greater growth compared to last year.

Suh Jeonggyo, CEO of Boosters, stated, "It is highly meaningful that our philosophy of sharing risks and the rewards of success with brands has been proven in terms of profitability and growth. Moving forward, we will continue to discover K-brands with unlimited potential and grow together, becoming the most reliable partner in creating new success stories not only in Korea but also in global markets."