HectoFinancial Records Highest Operating Profit Since Inception in Q1 2024

Global fintech company Hecto Financial achieved its highest quarterly operating profit since its founding in the first quarter of 2024.

Hecto Financial announced on the 8th through a preliminary earnings report that it recorded consolidated sales of 37.1 billion KRW, operating profit of 4 billion KRW, and net profit of 3.1 billion KRW for the first quarter. Sales increased by 2.1% compared to the same period last year, while operating profit and net profit rose by 41.3% and 5.3%, respectively.

On a separate basis excluding subsidiaries, the company recorded ▲sales of 33.8 billion KRW ▲operating profit of 4.6 billion KRW ▲net profit of 4.5 billion KRW. While sales were similar to the same period last year, operating profit and net profit increased significantly by 14.7% and 31.2%, respectively. In particular, the separate basis operating profit set a record high of 4.6 billion KRW, surpassing the previous maximum of 4.36 billion KRW in the third quarter of 2021, and the operating profit margin also rose from 11.8% in the same period last year to 13.5%.

The increase in separate basis operating profit was driven by growth in the highly profitable online payment services ‘NaeTongJang Payment’ and mobile phone payment sales, as well as cost reductions. Net profit increased due to the rise in operating profit and the impact of foreign exchange gains related to new overseas services.

On a consolidated basis, subsidiaries such as Hecto Data significantly reduced operating losses compared to the same period last year, resulting in a 41.3% increase in operating profit year-on-year, and the operating profit margin reached 10.9%, recovering to the 10% range for the first time in five quarters since the third quarter of 2022.

Choi Jongwon, CEO of Hecto Financial, said, “It is highly meaningful that we have restored an operating profit margin above 10% on a consolidated basis as a result of efforts to discover new growth engines and improve profitability. We will fully launch business with global e-commerce companies as a fintech platform and strengthen competitiveness in the global fintech sector by integrating the strengths of our data business, continuing to grow steadily.”

Hecto Financial is the number one account-based payment service company in Korea, possessing core technology for all payments by providing one-stop services from PG payment services to overseas settlement for major payment methods including simple cash payments, credit cards, and mobile phone payments.

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