THQ Turns Profitable Last Year... New Businesses Like Hainan Duty-Free Operations on Track

[Asia Economy Reporter Park Hyungsoo] THQ, which had been experiencing rapid quarterly growth, turned profitable based on external growth despite the prolonged COVID-19 pandemic.

THQ announced on the 13th that its consolidated sales last year reached 26 billion KRW, a 91.2% increase compared to the previous year. During the same period, operating profit turned positive at 3.2 billion KRW.

Domestic duty-free business (IP) sales increased. Although the travel industry was depressed due to the prolonged COVID-19 pandemic, the IP business sector achieved monthly average purchase performance exceeding 120 billion KRW. It is expected that the sales growth rate will accelerate as the transition to the post-COVID-19 era progresses.

The 5G antenna business also grew. Since the second half of last year, market share in the U.S. has steadily increased, with continuous growth in antenna orders for AT&T, one of the largest telecommunications companies in the U.S. As the mid-band construction for 5G small cells is planned in the U.S., the company is focusing on supplying small cell antennas that meet market demands.

The performance outlook for this year is also bright. Overseas duty-free business growth is expected to be remarkable. The Hainan duty-free shops are being strategically developed by Chinese authorities who are directly involved in attracting foreign tourists. Hainan authorities disclosed that sales and visitors at 10 duty-free shops in the region increased by 84% and 73%, respectively, compared to the previous year.

A company official explained, "Last year, THQ recorded external growth as the existing antenna business continued to grow and the IP business performance recovered," adding, "This year, we plan to focus on achieving concrete results in the Hainan duty-free business as well."

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