'Advertising Market Slowdown' PlayD Reports 88% Sharp Decline in 1Q Operating Profit

Sales Down 7.11% Year-on-Year
Operating Profit 170 Million Won, Down 88%
"Due to Economic Slowdown, Focus on Strengthening Profitability"

KT Group's digital advertising agency PlayD announced on the 12th that its first-quarter sales amounted to 8.96 billion KRW, with an operating profit of 170 million KRW. This represents a decrease of 7.11% and 88%, respectively, compared to the same period last year.

The first quarter is generally considered an 'off-season' in the advertising industry. However, PlayD explained that the reason for the 'negative growth' compared to the same period last year is due to unfavorable market conditions. The advertising market is slowing down due to the impact of the three highs (high interest rates, high inflation, and high exchange rates).

It is reassuring that the amount of advertising handled is on the rise. According to the 'Advertising Company Status Survey' conducted by the Korea Federation of Advertising Associations in the first quarter, PlayD's handled amount last year was 567.5 billion KRW, ranking 5th. It was the only digital-focused advertising agency to enter the top 5. The top four were Cheil Worldwide (7.2779 trillion KRW), Innocean (5.9914 trillion KRW), HS Ad (1.6378 trillion KRW), and Daehong Communications (977 billion KRW), respectively.

PlayD plans to continue expanding its scale by strengthening areas beyond digital, as its performance advertising revenue, a major source of income, has grown to the level of comprehensive advertising agencies. Additionally, this year, aligned with KT Group's 'Digico (Digital Platform Company)' strategy, PlayD will focus on maximizing the use of AI (artificial intelligence) to enhance profitability. Development efforts to increase productivity, such as applying ChatGPT to the marketing solution 'All it,' are ongoing.

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