HectoFinancial Achieves Record Q3 Sales Driven by Kiosk Business

Hecto Financial announced on the 8th that it has set a record for highest sales for seven consecutive quarters. The steady progress of existing businesses, along with the offline expansion of PG (Payment Gateway) services through the kiosk business, drove the growth in performance.

On the 8th, Hecto Financial disclosed its preliminary Q3 2023 consolidated results: ▲sales of 39.7 billion KRW ▲operating profit of 3.8 billion KRW. Compared to the same period last year, sales increased by 18.1%, while operating profit decreased by 6.5%.

Operating profit slightly declined year-on-year due to costs related to nurturing new data businesses and investments in the B2C platform business, but the cumulative operating profit for the first three quarters reached 9.7 billion KRW, maintaining a level similar to the previous year. Compared to the previous quarter, it rose by 27%, showing a three-quarter consecutive upward trend in profitability alongside sales growth.

Hecto Financial’s sales growth was driven by the PG business. In Q3, the PG business recorded sales of 16.1 billion KRW, growing 40.1% year-on-year and establishing itself as Hecto Financial’s core business. Acting as the exclusive distributor of Samsung Electronics’ kiosks, the company successfully targeted offline markets by combining kiosk device sales with integrated payment solutions, transitioning online PG services to offline channels.

Based on the stable growth of its existing payment service business, the newly invested businesses are also showing results. In the data business, which was fully launched after acquiring the data platform company ‘Hecto Data’ at the end of last year, Hecto Financial recently agreed to collaborate with Canadian AI health data analytics company ‘Lydia AI’ to introduce the ‘AI Health Scoring Solution’ that predicts future health to the domestic market. This solution began pilot operation on the MetLife Life Insurance comprehensive health management app ‘360 Health’ starting from the 6th.

The lifestyle finance platform 010PAY, which allows easy payments and gifticon purchases using ‘010PAY Money’ and ‘010PAY Points,’ is rapidly growing with over 3 million app downloads.

Choi Jong-won, CEO of Hecto Financial, stated, “We are focusing on the expansion of the online payment market, including simple cash payments and PG, as well as the online transformation of the offline payment market. By applying our payment solutions to Samsung Electronics’ kiosk devices, we plan to secure a leading position in the rapidly growing kiosk market and accelerate the offline expansion of PG services.”

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