[Click e-Stock] "Incross Expected to Improve Performance in Second Half"

Yuanta Securities analyzed on August 7 that Incross is expected to see improved performance in the second half of the year. The firm did not provide an investment opinion or target price.

On a consolidated basis, Incross reported second-quarter revenue of 10.353 billion KRW and operating profit of 2.241 billion KRW. Compared to the same period last year, these figures increased by 3.5% and 285.1%, respectively. Net profit for the quarter was 2.372 billion KRW, up 153.4%. Kwon Myungjun, a researcher at Yuanta Securities, said, "Despite the second quarter being an off-season for the advertising industry due to the presidential election, Incross still achieved year-on-year revenue growth. This appears to be the result of the new AOR (Agency of Record) business being reflected in the second-quarter results."

The company is expected to continue improving its performance in the second half of the year. The first reason is the execution of advertising budgets by companies. He explained, "The first half of this year was an off-season for the advertising industry due to ongoing political issues (impeachment and the presidential election). If advertising budgets could not be executed in the first half because of these political issues, it means that, conversely, the second half of this year is a period when the delayed advertising budgets must be executed intensively."

He added, "Incross is an affiliate of SK Telecom, and SK Telecom is expected to introduce various measures to increase subscribers in the second half of the year. Various promotional and marketing activities are also expected to expand, which is the second factor expected to drive improved performance."

Additionally, both AoR and T-Deal are expected to contribute to improved results. He said, "In the case of AoR, the number of client companies within the group is expected to increase. As seen in the second half of last year, AoR makes a significant contribution to profitability. We believe that securing new client companies will lead to improved performance."

He continued, "Although T-Deal was temporarily suspended, it is scheduled to resume in the second half of the year. T-Deal is also expected to expand its new client base in the second half, which should contribute to revenue growth."

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