InscoBi, 1Q Operating Profit Turns Positive... "Record High 1Q for Budget Phone Business Division"

[Asia Economy Reporter Hyunseok Yoo] InscoBee announced on the 18th that it succeeded in a turnaround by recording an operating profit of 68 million KRW and a net profit of 3.8 billion KRW in the first quarter on a consolidated basis. During the same period, sales increased by 39% to 17.3 billion KRW, marking double-digit growth.

The core business, the budget phone business, achieved its highest-ever first-quarter performance with sales of 15.1 billion KRW. Thanks to the expansion of budget phone subscribers, the company achieved good results, driving sales growth and performance improvement. As the budget phone market rapidly grows with the perception of "reasonable consumption" spreading among the MZ generation due to affordable plans without contracts, continuous sales growth and the establishment of an annual profit trend are expected.

The increase in postpaid subscribers is faster than that of existing prepaid subscribers, who were the main customers of InscoBee’s budget phone service, so sales are expected to increase further in the future.

A company official said, “The budget phone division strengthened customized plans and promotions according to the growing market situation,” adding, “We achieved the highest-ever first-quarter sales in the budget phone division through the establishment of a self-activation service that enables non-face-to-face activation in the COVID-19 era.” He continued, “Due to the impairment reversal effect following the resumption of transactions with the subsidiary Cellumed, net profit turned positive from a loss of 1.1 billion KRW last year to a profit of 3.5 billion KRW.”

Growth in performance is expected not only in the second quarter but also in the second half of this year. The bio cosmeceutical division, which has established itself as a new revenue model since last year, recently officially launched two new brands, the dermocosmetic brands ‘Biomedica’ and ‘Coralhaze.’ Following the home shopping sell-out streak of ‘Dermicos’ and ‘Biplasti,’ ‘Coralhaze,’ which was introduced for the first time through home shopping yesterday, sold out from its first broadcast, so the bio cosmeceutical business is expected to see sales growth this year as well as last year.

The smart grid division is also accelerating order expansion by preparing to participate in the KEPCO AMI project bidding. A company official said, “Thanks to the market growth trend, the budget phone division has established a stable profit structure as a cash cow,” adding, “The bio cosmeceutical and smart grid sectors will continue stable performance growth through strengthening internal capabilities.”

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