Mercury's Q3 Operating Profit Hits 4 Billion Won, Up 198% QoQ

Information and communications equipment specialist Mercury improved its third-quarter performance, driven by increased fiber-optic cable supply from its subsidiary, Mercury Optical Communications. The company plans to sustain its growth by expanding Wi-Fi 7 supply and upgrading its fiber-optic cable production facilities.

Mercury disclosed on Nov. 9 that it recorded provisional consolidated revenue of 38.2 billion won and operating profit of 4 billion won in the third quarter of this year.

Revenue rose 29.1% year over year and 26.8% quarter over quarter. Operating profit increased 198.4% from the previous quarter, and the company swung to a profit from an operating loss of 300 million won in the third quarter of last year. Its operating margin was approximately 10.3%. Net income also reached 4.6 billion won, reversing the losses recorded both in the previous quarter and in the same period last year.

Cumulative results also improved. Revenue through the third quarter totaled 94.3 billion won, up 13.2% year over year. Cumulative operating profit was 4.1 billion won, reversing an operating loss of 2.8 billion won in the same period last year. The cumulative net loss narrowed from 2.2 billion won to 100 million won.

The improvement was driven by increased fiber-optic cable supply from Mercury Optical Communications, a wholly owned subsidiary. Higher revenue from the fiber-optic cable business contributed to growth in both consolidated revenue and operating profit.

Mercury is also investing to strengthen its competitiveness in fiber-optic cable production and its ability to meet demand for high-value-added products. Mercury Optical Communications plans to relocate its production facility, covering approximately 9,000 pyeong, to Mungyeong, Gyeongsangbuk-do. The company aims to improve production efficiency by introducing new equipment and upgrading its processes, while strengthening its capacity to manufacture high-value-added products, including high-density, multi-core fiber-optic cables for AI data centers.

Mercury is also expanding the supply of next-generation products in its core home network equipment business. While continuing to supply Wi-Fi 6 access points (APs) and wired network equipment, it recently increased the value of its Wi-Fi 7 AP supply contract with KT from approximately 8.8 billion won to 14.2 billion won.

Mercury plans to respond to new demand and broaden the foundation for business growth by expanding the supply of next-generation network equipment and strengthening its fiber-optic cable production base.

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