[Public Notice+] Aton's Q1 Net Profit Slightly Increases... "Holding Up Well Despite COVID Shock"

[Asia Economy Reporter Jang Hyowon] Fintech security company Aton (CEO Kim Jongseo) announced on the 15th through its Q1 earnings disclosure that it recorded sales of 6.9 billion KRW and an operating profit of 600 million KRW. These figures represent decreases of 11.1% and 30.9%, respectively, compared to the same period last year. Net profit slightly increased from 920 million KRW to 930 million KRW during the same period.

According to consolidated financial statements, the decline in sales was attributed to reduced demand in non-core business sectors caused by the COVID-19 pandemic, while the operating profit showed a temporary weakness due to one-time expenses related to the launch of the ‘PASS Car’ service and R&D activities for subsidiary platform advancement.

On a separate basis, although sales decreased compared to the previous year, operating profit increased compared to the same period last year, indicating an improvement in profitability, which is considered encouraging. Furthermore, starting from Q2, the effects of new business model (BM) innovations such as the launch of security solutions for IoT services and cloud services are expected to become more prominent.

By business segment, sales of fintech security solutions decreased by approximately 24% year-on-year due to the base effect of large bank implementation sales secured last year. However, various new business orders and contracts, including those from major domestic banks, are becoming visible in the first half of the year, suggesting stable growth in this business segment.

Additionally, the fintech platform service segment recorded sales of 1.4 billion KRW this quarter, a 42% increase year-on-year, maintaining a steep growth trajectory driven by the growth of PASS’s subscription-based services. Plans are in place to further expand sales channels through new content-based service expansions, including the recently launched ‘PASS Car’ service.

Meanwhile, the performance of non-core business sectors such as T-money solutions and smart finance declined. This was due to reduced financial SI development and T-money card supply caused by the impact of COVID-19.

An Aton official stated, “Despite Q1 being a seasonal off-peak period due to industry characteristics, we confirmed the growth potential of our core business through increased license sales of fintech security solutions and steady growth of fintech platform services. As non-face-to-face financial services become more active, market demand for fintech security services is rising, and with the full revision of the Electronic Signature Act being discussed in the National Assembly plenary session, interest in the growth of the private certification market is increasing even further.”

Aton is expected to continue its steady growth by diversifying its business centered on fintech security solutions and fintech platform business segments. Along with the recently announced security solutions for smart home and IoT services, the company plans to secure new sales channels with the upcoming launch of cloud-based services in the first half of the year.

Kim Jongseo, CEO of Aton, expressed, “We expect that fintech industry activation policies such as the Korean New Deal promoted by the government will serve as additional growth drivers. We will focus on our core competencies to enhance corporate competitiveness and establish a foundation for future growth by continuously expanding new sales channels.”

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