GS Home Shopping Q1 Operating Profit 31.9 Billion KRW...16.9% Decrease Compared to Last Year

[Asia Economy Reporter Seungjin Lee] GS Home Shopping announced on the 7th that its transaction amount in the first quarter of 2020 reached 1.0951 trillion KRW, a 0.2% increase compared to the same period last year. During the same period, sales increased by 8.2% to 297.8 billion KRW. Operating profit decreased by 16.9% to 31.9 billion KRW, and net profit declined by 11.9% to 31.8 billion KRW.

The transaction amount and sales slightly rose due to increased sales of health foods and general foods amid the impact of the novel coronavirus infection (COVID-19). Operating profit was affected by a base effect from a one-time gain (VAT refund) recorded in the first quarter of last year.

By channel, growth centered on mobile continued. Mobile shopping transaction amount recorded 593.4 billion KRW, a 4.0% increase year-on-year, driven by an increase in purchasing customers. The proportion of mobile shopping in total transaction amount was 54.2%. During the same period, TV shopping increased by 0.4% to 411.1 billion KRW.

GS Home Shopping is securing product competitiveness in line with changes in customers and shopping trends and expanding growth centered on mobile. As of the first quarter, the number of mobile shopping app downloads exceeded 35.7 million (excluding duplicates).

Going forward, GS Home Shopping plans to enhance customer analysis capabilities through big data and strive to secure mergers and acquisitions (M&A) and new technologies through domestic and international venture investments. The company intends to continuously discover and nurture new business models with growth potential.

This content was produced with the assistance of AI translation services.