Innocean hits record quarterly profit on overseas growth

Innocean, the advertising arm of Hyundai Motor Group, said Monday it posted its highest-ever quarterly operating profit in the first quarter, driven by an expanded client base and overseas operations.

The company’s operating profit rose to a record 39.8 billion won (27.03 million) in the January-March period, beating market expectations.

Revenue increased 4.1 percent on-year to 523.8 billion won in the first quarter. Gross profit rose 7.7 percent to 250.1 billion won, while net profit surged 134.5 percent to 29.6 billion won.

Describing the results as an “earnings surprise,” the company attributed the strong performance to its diversified global portfolio, improved domestic earnings, cost reduction achieved through artificial intelligence-driven workflow innovation and organizational efficiency measures.

Domestic growth was particularly fueled by an expansion of clients beyond affiliate advertisers within Hyundai Motor Group, the company explained.

In South Korea, the first quarter gross profit rose 7.8 percent from a year earlier to 50.3 billion won.

Overseas, the company continued to post growth centered on the Americas and Europe, supported by Hyundai Motor Group’s expanding global operations. First quarter overseas gross profit rose 7.7 percent on-year to 199.8 billion won.

Optimism surrounding the second quarter remains strong as the FIFA World Cup is scheduled to take place in June and July across North America. Innocean is expected to gain significantly from the event, as its key client, Hyundai Motor Company, has been an official sponsor for the World Cup since 1999.

“Our Americas’ entertainment business and sports marketing represent repeatable growth engines, and we plan to continue expanding high-value businesses across regions and industries to enhance both profitability and corporate value going forward,” said Shin Seung-ho, CFO of Innocean.

Meanwhile, Innocean is intensifying its focus on India as a new growth engine. The company has successfully executed sports marketing initiatives tied to the Cricket World Cup and opened a new office in Bengaluru.