In the third quarter, Shinsegae I&C's operating profit rose 29% year on year to KRW 16.194 billion, while revenue increased to KRW 168.789 billion. Cost savings from streamlining low-margin businesses and transferring the EV charging business lifted profit.
Shinsegae I&C, the IT subsidiary of Shinsegae Group, reported consolidated third-quarter operating profit of KRW 16.194 billion and revenue of KRW 168.789 billion, with operating profit up 29.03% year on year. Revenue for the quarter was KRW 168.789 billion and net income was KRW 14.091 billion, representing year-on-year increases in both revenue and profit.
By segment, IT services drove growth. On a non-consolidated basis, IT services revenue exceeded KRW 116.1 billion, up 8.9% year on year, while IT equipment revenue increased from KRW 8.9 billion to KRW 12.5 billion. SI revenue rose from KRW 24.0 billion to KRW 29.5 billion, driven by growth in external sales of IT equipment and private infrastructure.
IT distribution returned to profitability, helped by game distribution products such as Pokémon cards. Revenue from the games business increased from KRW 21.3 billion to KRW 26.2 billion, while total IT distribution revenue rose 10.3% to KRW 47.7 billion. Playgram's revenue and operating profit also improved.
IT information services, meanwhile, improved profit despite lower revenue. Revenue declined as the low-margin messaging business was scaled back, but operating profit increased from KRW 3.9 billion to KRW 4.3 billion. Although education revenue increased, the business structure reforms that prioritised improving overall profitability proved effective.