Hyundai Home Shopping Reports Operating Profit of 60.55 Billion KRW Last Year, Down 45% YoY

Appointment of CEO Han Kwang-Young at the Board Meeting
Decision to Pay Cash Dividend of 2,800 KRW per Share

Hyundai Home Shopping announced on the 6th that its consolidated operating profit for last year was preliminarily estimated at 60.551 billion KRW, down 45.3% from the previous year.

During the same period, sales decreased by 1.7% to 2.0649 trillion KRW, while net profit increased by 59.1% to 137.346 billion KRW.

Hyundai Home Shopping CI. [Image provided by Hyundai Home Shopping]

On a quarterly basis, operating profit also showed a declining trend. Hyundai Home Shopping's consolidated operating profit for the fourth quarter of last year was preliminarily estimated at 9.28 billion KRW, which is 48.5% lower than the same period last year. Sales during the same period increased by 4.9% to 542.64 billion KRW.

A Hyundai Home Shopping official explained, "Operating profit decreased due to a decline in transaction volume caused by consumer stagnation and a reduction in the composition of high-priced products such as rental and living items, as well as increased costs such as transmission fees."

The home shopping sector experienced an overall deterioration in transaction volume sales due to consumer stagnation and worsening home shopping market conditions. Hyundai Home Shopping's home shopping transaction volume last year was 3.8126 trillion KRW, down 7.2% from the previous year. Looking at transaction volume by channel, the decline in TV transaction volume was significant. Last year, TV and Internet (Hmall) transaction volumes were 2.0867 trillion KRW and 1.6136 trillion KRW, respectively, representing decreases of 9.2% and 5.5% compared to the same period last year.

Operating profit was heavily burdened by transmission fees paid to paid broadcasting operators. Hyundai Home Shopping's individual operating profit last year was 44.9 billion KRW, down 60.2% from the previous year's operating profit of 112.7 billion KRW. This contrasts with Hyundai L&C, another subsidiary of Hyundai Home Shopping, which turned a profit with an operating profit of 15.7 billion KRW during the same period.

At the board meeting held that day, Hyundai Home Shopping appointed Han Kwang-young, Executive Director of the Sales Headquarters, as the new CEO. CEO Han was promoted to executive director in 2016 as head of Hyundai Home Shopping's Hmall division and served as executive director of the business division in 2020. In the regular executive personnel reshuffle last November, Hyundai Department Store Group had already designated Han as vice president and CEO of Hyundai Home Shopping. With this, Hyundai Home Shopping changed to a dual CEO system with Vice Chairman Jung Kyo-sun and CEO Han Kwang-young.

Meanwhile, Hyundai Home Shopping decided on a year-end cash dividend of 2,800 KRW per common share that day. The dividend yield is 6.2%, and the total dividend amount is 32.0537 billion KRW.

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