Digital Daesung, Q3 Cumulative Sales Reach 150.4 Billion Won... "Surpassing Last Year's Sales"

[Asia Economy Reporter Hyunseok Yoo] Digital Daesung announced on the 15th that it recorded cumulative sales of 150.4 billion KRW through the third quarter of this year, surpassing last year's figures.

Cumulative sales for the third quarter increased by 41.0% compared to the same period last year. Operating profit also improved by 78.8% to 26.6 billion KRW. With sales in the third quarter, when preparation for the College Scholastic Ability Test (CSAT) intensified, exceeding expectations, the company achieved last year's annual sales level one quarter ahead of schedule and expects to surpass 200 billion KRW this year.

Consolidated sales for the third quarter reached 55.6 billion KRW, growing 36.8% year-on-year. Operating profit was 14.8 billion KRW, up 51.0% from the previous year. Digital Daesung, which aggressively strengthened non-face-to-face services amid the COVID-19 situation, continued its growth streak for three consecutive quarters with sales increasing by 41.9% and 45.6% in the first and second quarters, respectively, compared to the same periods last year.

Sales in the elementary and middle school business division reached 32 billion KRW, and sales in the high school business division recorded 120.4 billion KRW, showing balanced growth. Igam, which operates the Korean language mock exam business, grew significantly with sales increasing by 40.9% and operating profit by 169.6% compared to the previous year. This was due to the reduction of the EBS linkage rate for the Korean subject to 50% starting from the 2022 CSAT and the shift to an indirect linkage method that does not use passages verbatim, increasing the importance of Korean language preparation. Additionally, Igam's mock exams gained strong popularity among students as they allow training in a realistic test environment through a dedicated application featuring proctor voice and CSAT announcement broadcasts.

The reading and essay education service ‘Hanuri Open Education’ has also grown steadily, doubling its membership from 60,000 in 2015 to 120,000 in five years. Hanuri, which holds the number one market share in the domestic reading discussion and essay education sector, has been steadily popular among parents as students' literacy decline has emerged as a social issue.

Digital Daesung is expected to continue its rosy outlook in the fourth quarter, when the CSAT is held and preparation for next year's CSAT begins. The online education business brand Daesung MyMac is strengthening its content by launching the upgraded ‘2023 Daesung All Pass’. In line with the With-Corona era, the company plans to expand its business not only domestically but also overseas. Chadwick International School in Vietnam, scheduled to open for the fall semester of 2023, is preparing for its opening without delay despite the adverse effects of the COVID-19 pandemic.

A Digital Daesung official stated, “All business divisions grew evenly, achieving results beyond expectations. As interest in online education content increases, Daesung MyMac’s Daesung All Pass is upgrading both quality and price to expand its target audience and enhance the value of strategic products, making the outlook for next year bright.”

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