Cheil Worldwide's consolidated revenue and operating profit for the second quarter of this year both increased. This is interpreted as a result of the increase in advertising volume from non-affiliated advertisers and the continued growth of its overseas subsidiaries.
On the 25th, Cheil Worldwide announced in a preliminary report that its consolidated revenue for the second quarter of this year was 1.1188 trillion won, an increase of 2.7% compared to the same period last year. During the same period, operating profit was 92.1 billion won, up 4.4%, and gross profit was 483.8 billion won, an increase of 7%. Gross profit is the amount remaining after deducting the cost of sales from revenue, and the advertising industry considers gross profit, excluding expenses paid to subcontractors such as production partners, as a key performance indicator.
A representative from Cheil Worldwide said, "Both domestic and international figures grew, centering on digital and above-the-line advertising (ATL)." In particular, he noted, "The increase in advertising volume from new clients such as Coway and Nongshim, as well as from existing non-affiliated advertisers like Netflix, had a significant impact." The growth of overseas subsidiaries is also a major factor in the increase in performance. He added, "The North American and Latin American subsidiaries showed double-digit growth."
In the second quarter, the business composition of Cheil Worldwide by service was 55% digital, 30% below-the-line advertising (BTL), and 15% above-the-line advertising (ATL). Among these, ATL, centered on major non-affiliated advertisers such as North American subsidiaries and the headquarters, increased by 16% compared to the same period last year.