Cheil Worldwide Reports Q2 Operating Profit of 92.1 Billion KRW, Up 4.4% Year-on-Year

Gross Profit Reaches 483.8 Billion KRW, Up 7%
Growth Driven by Increased Volume from Existing Advertisers and Overseas Performance

Cheil Worldwide continued its upward trend in the second quarter of this year, driven by increased volume from existing advertisers and strong overseas performance by its subsidiaries.

Cheil Worldwide CI. Provided by Cheil Worldwide

On July 25, Cheil Worldwide announced in a regulatory filing that its consolidated operating profit for the second quarter of this year was provisionally tallied at 92.1 billion KRW, up 4.4% from the same period last year. During the same period, revenue increased by 2.7% to 1.1188 trillion KRW. Gross profit, calculated by subtracting cost of sales from revenue, rose by 7% to 483.8 billion KRW. In the advertising industry, gross profit?excluding outsourcing costs paid to partners such as production companies?is considered a key performance indicator due to the high proportion of these expenses.

In detail, the parent company achieved a 1% year-on-year increase in gross profit to 106.8 billion KRW, driven by new advertisers such as Coway and Nongshim, as well as increased volume from existing clients like Netflix. During the same period, the consolidated subsidiaries’ gross profit grew by 8% to 377 billion KRW, thanks to sustained solid growth in major overseas markets such as North America and Latin America.

In the second quarter, Cheil Worldwide’s business mix by service was 55% digital, 30% BTL (below-the-line advertising), and 15% ATL (above-the-line, or traditional advertising). Notably, ATL focused on non-affiliated advertisers in key regions such as North America subsidiaries and the parent company grew by 16% compared to the same period last year.

Cheil Worldwide plans to continue its management with a goal of achieving annual gross profit growth of more than 5% and maintaining profitability this year. The company also intends to strengthen its core businesses centered on digital platforms, retail, and data, while expanding its business domains. In addition to enhancing expertise in sectors such as automotive, healthcare, travel, and food & beverage, and developing large-scale advertisers, Cheil Worldwide will also focus on defending profitability by recovering underperforming subsidiaries.

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