Abko, 3Q Profit 'Operating Income 1.9 Billion KRW'... Establishing a Positive Earnings Trend
New Life platform company Abko, centered on gaming gear, is maintaining a profit trend for two consecutive quarters with the goal of turning an annual profit this year.
On the 2nd, Abko announced through its Q3 report that it recorded an operating profit of 1.9 billion KRW for the third quarter on an individual basis this year. This marks a significant turnaround from a loss of 1.5 billion KRW in the same period last year.
During the same period, net profit was 1.9 billion KRW, and sales amounted to 21.5 billion KRW. In particular, sales showed a strong performance, increasing by about 35% compared to the previous quarter, which was the first to achieve profitability this year.
On a cumulative basis for the third quarter, operating profit also turned positive at 1.6 billion KRW, while sales and net profit for the same period were 65.5 billion KRW and 1.2 billion KRW, respectively.
The strong performance was driven by improved operating profit margins through the efficiency of selling and administrative expenses. Abko reduced selling and administrative expenses to the 3 billion KRW range for four consecutive quarters from Q4 2022 to Q3 2023. The selling and administrative expenses for Q3 this year were the lowest at 3.4 billion KRW, about half of the average quarterly expenses of approximately 7 billion KRW in 2021.
An Abko representative stated, “Following Q3, we expect to turn an annual profit as well. The gradual recovery in demand in the gaming gear market, along with internal cost structure efficiency improvements, has led to a complete structural improvement, which resulted in this achievement.”
Hot Picks Today
"Most Americans Didn't Want This"... Americans Lose 60 Trillion Won to Soaring Fuel Costs
- As Samsung Falters, Chinese DRAM Surges: CXMT Returns to Profit in Just One Year
- Ebola Outbreak With No Vaccine or Treatment Sparks Fears: "One American Infected"
- Samsung Union Member Sparks Controversy With Telegram Post: "Let's Push KOSPI Down to 5,000"
- "Why Make Things Like This?" Foreign Media Highlights Bizarre Phenomenon Spreading in Korea
They added, “With the gold medal win by the Korean national team in LoL (League of Legends) at the 'Hangzhou Asian Games,' the domestic hosting of the '2023 LoL World Championship,' and major gaming events such as 'G-Star 2023,' next year looks even more promising than this year. We anticipate continued growth in performance through the gradual recovery of PC bang usage rates, expansion into office gear business areas, and the full-scale start of orders for the smart school charging storage locker business.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
