"Reduction of High-Priced Product Categories and Commission Burden"... Hyundai Home Shopping's Q2 Operating Profit Plummets (Comprehensive)

Hyundai Home Shopping announced on the 7th that its operating profit on a consolidated basis for the second quarter of this year was 17.6 billion KRW, a sharp decline of 36.4% compared to the same period last year.

Although the number of securities firms estimating the results does not exceed three, the figure falls short of the market's expected operating profit of 19.1 billion KRW. Sales amounted to 522.8 billion KRW, down 3.6% from the same period, while net profit increased by 4.6% to 30.2 billion KRW.

On a separate basis, the decline in profit is even greater. The operating profit of the home shopping division in the second quarter was 8 billion KRW, down 70.3% compared to the second quarter of last year, and sales decreased by 3% to 264.8 billion KRW.

With sales growth stagnating in the second quarter, the increase in costs such as transmission fees is analyzed as the cause of the decline in operating profit. The company explained, “Sales slightly decreased due to the reduction in the composition of high-priced product groups such as rental and living,” and “profits decreased due to increased costs such as transmission fee hikes.”

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