Lingnet Posts 4.1 Billion KRW Operating Profit in Q3 Cumulative... "Committed to New Business Development"

[Asia Economy Reporter Hyunseok Yoo] RingNet announced on the 17th that it recorded cumulative sales of 107.8 billion KRW, operating profit of 4.1 billion KRW, and net profit of 4.3 billion KRW on a consolidated basis for the third quarter.

CEO Juseok Lee stated, “Although operating profit turned positive in the third quarter, operating profit decreased by 22% compared to the previous year, and cumulative operating profit also declined by nearly 27% year-on-year. Generally, it was expected that the network demand would increase due to the activation of untact (contactless) industries caused by the COVID-19 pandemic, leading to a boom in the NI industry, but the actual performance was considerably distant from these expectations.

The solutions in the anticipated video conferencing sector fell short of expectations. In particular, although the number of customers for small-scale video conferencing solutions increased, it did not translate into profitability. The company forecasts that in the fourth quarter, overall demand in the ICT sector will become uncertain, and intensified competition in the cloud and 5G equipment system sectors will make securing profitability difficult.

However, RingNet has been steadily improving its financial structure to thoroughly prepare for maintaining corporate sustainability even during prolonged recessions. A company official said, “We are doing our best to develop new businesses and discover new customers to overcome the situation. The more social distancing and untact activities are emphasized, the more network demand will inevitably increase,” adding, “Investment in this area is expected to expand, so despite the difficult economic situation, we believe we can successfully conclude 2020.”

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