ITCEN GLOBAL revenue jumps 54% to record as net profit rises despite margin squeeze - Chosunbiz
ITCEN GLOBAL reported a 54% year-on-year increase in consolidated revenue for the third quarter to 7.1111 trillion won, with net profit rising 34% to 120.8 billion won despite a 15% drop in operating profit.
The company disclosed on November 13 that its third-quarter consolidated revenue reached 7.1111 trillion won, a significant 54% increase from the same period last year. While operating profit fell 15% to 101.3 billion won, net profit rose impressively by 34% to 120.8 billion won.
This revenue growth was primarily driven by expansion in Web3 businesses, particularly the Korea Gold Exchange, and strong performance in the IT services institutional sector through ITCEN CTS and ITCEN ENTEC.
Gold price impact
The decline in operating profit was attributed to earnings volatility in the Web3 business sector following recent gold price drops. ITCEN GLOBAL explained that Korea Gold Exchange's profitability is directly influenced by international gold prices and derivatives hedging gains and losses.
When gold prices fall, operating profit can decrease while non-operating income may increase due to hedging effects, creating this margin squeeze for the company.
IT services growth
The IT services institutional sector demonstrated remarkable growth, with revenue increasing over 13% and operating profit surging more than 480% compared to the previous year. This expansion was fueled by growing digital transformation projects in both public and private sectors.
The company's strategic shift toward artificial intelligence and solutions, along with higher development productivity from in-house AI technologies Intellicen Code and AgentGo, significantly improved profitability in this sector.
For the Web3 business, some listing-related procedures are being delayed somewhat in consultations with the relevant authorities, but the overall timetable is proceeding without major disruption.
Future plans
ITCEN GLOBAL is moving to merge Korea Gold Exchange and Korea Gold Exchange Digital Asset to strengthen its Web3 business competitiveness. The integration aims to combine management resources and technology infrastructure to boost operational efficiency and expand new business opportunities.
The CEO expressed confidence in the company's fourth-quarter performance, noting that revenue and profitability are typically concentrated during this period. ITCEN GLOBAL expects strong annual results based on solid performances in both the Web3 and IT services institutional sectors.
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