[Click e-Stock] "Incross Expected to Improve Performance in Q4"

Yuanta Securities analyzed on November 6 that Incross is expected to see improved performance in the fourth quarter. The firm did not provide an investment opinion or target price.

In the third quarter, Incross recorded sales of 13.012 billion won and operating profit of 3.647 billion won, representing a decrease of 1.9% and 32.0%, respectively, compared to the same period last year. Kwon Myungjun, a researcher at Yuanta Securities, explained, "The commerce business improved due to the resumption of T-Deal, which had been temporarily suspended, and the acquisition of new clients. The advertising business saw improvements in sectors such as telecommunications and cosmetics, but experienced negative growth year-on-year due to a contraction in the gaming sector."

However, he expects performance growth in the fourth quarter. The advertising industry typically enters its peak season in the second half of the year, with the fourth quarter being the busiest period. He stated, "New game releases from companies such as Nexon, NCSoft, and Smilegate are scheduled for the fourth quarter. Intense competition is expected to lead to increased advertising and marketing within the gaming industry, which in turn is anticipated to drive performance improvements for the company."

He added, "Advertising performance within the group companies is also expected to improve. According to KTOA, SK Telecom saw an increase in subscribers in both September and October, and the necessity for advertising execution has been established due to cybersecurity issues among competitors."

He further noted, "The AoR (Agency of Record) business for client companies is also likely to be concentrated in the fourth quarter, which is expected to contribute to profitability. Additionally, the AI-based marketing platform Stellize is seeing an expansion in new campaigns in the fourth quarter, which is expected to further improve performance."

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