Cheil Worldwide Posts Second Quarter Operating Profit of 92.7 Billion Won, Up 0.6% Year-on-Year
Gross Profit Rises to 489.6 Billion Won, Up 1.2%
Cheil Worldwide announced on the 24th that, on a consolidated basis, its operating profit for the second quarter of this year reached 92.7 billion won, marking an increase of 0.6% compared to the same period last year. Revenue fell by 4% to 1.0745 trillion won. Gross profit, which is calculated by subtracting cost of sales from total sales, was 489.6 billion won, a 1.2% increase year-on-year. Gross profit for the first half of the year (January to June) was also up 1.6% to 931.9 billion won.
Operating profit for the first half of the year (January to June) came in at 129.2 billion won, a decrease of 14.2% from 150.6 billion won during the same period last year. Regarding this, a Cheil Worldwide representative stated, "This was due to efficiency costs incurred during the restructuring of overseas operations, as well as a one-time recognition of severance-related provisions at headquarters." The company also explained that the number of overseas employees declined from 8,070 at the end of June last year to 7,871 at the end of June this year.
The share of non-affiliated business within first-half gross profit was 29%, up from 28% in the same period last year. In Korea, the company secured new advertisers such as Naver Shopping, Jobis & Villains, and Dunamu Upbit. Overseas, it added clients including China Construction Bank, Chinese travel platform Ctrip, and Thailand's retail company Makro. Headquarters and overseas consolidated subsidiaries posted gross profits of 107.6 billion won and 382.0 billion won, respectively.
By service category, the proportion of gross profit was the highest for digital at 56%, followed by retail and BTL (experiential events and in-store promotions, i.e., offline marketing) at 30%, and ATL (traditional media such as TV and newspapers) at 14%.
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A Cheil Worldwide official commented, "We are strengthening our business structure with a focus on digital and retail marketing to align with changes in advertiser demand," adding, "By driving work innovation utilizing AI and expanding our non-affiliated client base, we plan to continue broadening the foundation for growth."
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