EastsSoft Cuts Operating Loss by 53% in First Half as AI and SW Revenue Rises 18%
IT DAILY ·
✦ AI Summary
EastsSoft's revenue for the first half of this year came to KRW 60.7 billion, up 7.6% from a year earlier.
Operating loss during the same period fell 53.3%, or KRW 2.3 billion, year over year.
The company said higher revenue in AI and SW, workforce efficiency efforts, and lower stock-based compensation costs drove the improvement.
EastsSoft said revenue rose and operating loss narrowed sharply on a consolidated basis in the first half of this year. Revenue for the first half came to KRW 60.7 billion, up 7.6% from a year earlier and the highest for any first half on record.
Operating loss during the same period fell 53.3% year over year, or KRW 2.3 billion. The company said the improvement in first-half profit and loss was driven by higher revenue centered on its AI and SW businesses, along with workforce efficiency efforts and lower stock-based compensation costs.
Among its business segments, AI and SW posted the strongest growth. Revenue from the AI and SW business rose 18.3% year over year to KRW 30.3 billion.
The company said the growth was driven by its AI avatar-based generation service PERSO.ai, AI transformation (AX), and its AI education business.
EastsSoft said operating loss narrowed thanks to higher revenue in its gaming and asset management businesses, as well as cost reductions. Revenue from the gaming business rose 2.9% year over year to KRW 16.4 billion, driven by the launch effect of the new title 'Cabal RED.' Revenue from the asset management business also increased 7% to KRW 9 billion. These revenue gains helped reduce operating loss.
On the profitability side, profit and loss improved despite higher fees linked to revenue and increased advertising and promotional expenses. The company said workforce efficiency efforts, lower stock-based compensation costs, and a reduced fixed-cost burden affected the narrowing of operating loss. An one-time gain from the disposal of derivatives was also reflected in the improved results.
Consolidated revenue in the second quarter fell slightly from a year earlier. However, second-quarter net loss narrowed 22.1% year over year to KRW 1.3 billion. As a result, the first-half operating loss continued to shrink and the second-quarter net loss also narrowed, extending the improvement trend in profitability.
EastsSoft plans to pursue both business expansion and cost efficiency in the second half, especially in AI and AX-related areas. It intends to expand state-backed projects in AI and AX as well as state-backed talent development programs, and to supply its AI avatar solution, 'Perso Interactive,' to retail sectors at home and abroad and to mobility sectors at home and abroad.
As the company pushes to expand its AI security business, it aims to broaden operations centered on its flagship product, Alyac Agentic EDR (endpoint detection and response), while continuing the cost-efficiency stance adopted in the first half and improving profitability and its cost structure in line with group-wide efforts to improve earnings.
Source: IT DAILY · Kim Byeong-ju
Original: https://www.itdaily.kr/news/articleView.html?idxno=241021
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Source: IT DAILY
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