Estsoft Posts 18.9 Billion Won Operating Loss Last Year... "Expects Profitability Improvement"

Estsoft saw its revenue increase thanks to the growth of its artificial intelligence (AI) services, but recorded an operating loss of about 18.9 billion won due to the impact of infrastructure investments.

Estsoft announced on the 26th that on a consolidated basis last year it posted revenue of 106.7 billion won and an operating loss of 18.9 billion won. Revenue exceeded 100 billion won for the second consecutive year, driven by the growth of Perso AI and Altools, the education business, and the launch of new games.

However, the scale of losses increased as infrastructure investment for AI services expanded.

Estsoft explained that “Perso Interactive,” a fully finished product provided in kiosk and tablet formats, is being used by companies and institutions in Korea and abroad. Estsoft expects revenue growth and an improvement in its profit and loss this year through the expansion of its AI business.

A representative of Estsoft said, “The profitability burden from preemptive investment in the AI business is beginning to show a leverage effect as the revenue share of our core AI services increases and our fixed-cost structure stabilizes,” adding, “We expect this to be a turning point where revenue growth and profitability improvement appear simultaneously.”