FSN's Best Half-Year Performance... "Debt Ratio Also Significantly Reduced to 88%"

[Asia Economy Reporter Jang Hyowon] Future Stream Networks (hereinafter FSN), a comprehensive digital marketing specialist company that successfully separated from YM (Yellow Mobile) Group this year, achieved its highest performance in the first half of the year. All business sectors, including marketing, ad tech, platform, and brand commerce, showed steady growth, driving record-breaking results.

FSN also significantly improved its debt ratio in the first half of this year. Convertible bonds (CB), which had been considered an overhang risk, decreased by 71% compared to last year, lowering the debt ratio substantially from 180% at the end of last year to 88% in the first half of this year.

Highest First-Half Performance Since Establishment... Significant Debt Reduction

FSN's consolidated sales for the first half of this year reached 101 billion KRW, an increase of about 43% compared to the same period last year. Operating profit during the same period recorded 6.1 billion KRW, increasing approximately 703%. Both sales and operating profit for the first half marked the highest levels since the company's founding. Net profit, which recorded a loss of 400 million KRW in the first quarter, turned positive with 4.2 billion KRW in the second quarter, resulting in a net profit of 3.8 billion KRW for the first half.

Along with record-breaking performance, financial improvements such as debt reduction were also observed. The total amount of CB, which had remained around 42.7 billion KRW since 2018 as a potential overhang risk, drastically decreased to about 12.1 billion KRW in the first half of this year, serving as a major factor in debt reduction. With the conversion of CB and an approximately 58% increase in total equity compared to the end of last year, reaching 119.8 billion KRW, FSN's debt ratio dropped significantly to 88% as of the first half of this year. The simultaneous achievement of record performance and capital expansion led to an improved financial structure.

The company stated, "Since stabilizing the major shareholder's stake after the separation, our top management priority has been to enhance business capabilities to restore market trust. As a result, financial structure improvements are also visibly progressing alongside performance growth. We will continue to strive for performance improvement until the company's value is fully re-evaluated based on business capabilities, erasing the previously poor image and regaining market trust."

Enhancing Profitability Based on New Businesses

Following the first quarter, FSN recorded steady growth across all business sectors in the second quarter as well. As of the first half of this year, FSN achieved sales growth of ▲24% in marketing business ▲11% in ad tech and platform business ▲302% in brand commerce business, demonstrating multi-faceted sales growth.

In particular, FSN's brand commerce new business sector continued its monthly record-breaking performance this year. The brand commerce new business corporation Boosters recorded sales of 21 billion KRW in the first half of this year, a surge of about 302% compared to the same period last year. Operating profit also reached 2.8 billion KRW, joining the ranks of solid performers and contributing to overall results. The remarkable growth in the commerce business sector, known as a highly profitable area within the industry, appears to be gradually resolving the profitability improvement challenges previously raised for FSN.

The company plans to maintain continuous growth by focusing all efforts on growth across all domestic and international business sectors in the second half of the year, when advertising marketing execution intensifies, having already achieved record performance even in the traditionally slow first half of the advertising industry.

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