Cheil Worldwide Q3 operating profit at 77 billion won, down 20% ... “Impact of stronger won”

[Financial News] Cheil Worldwide’s earnings declined amid clients’ efforts to streamline marketing budgets and the impact of the stronger won.
Cheil Worldwide announced on the 30th that its consolidated operating profit for the third quarter of this year was provisionally tallied at 77 billion won, down 19.7% from the same period last year.
Revenue for the same period fell 12.6% year on year to 1.039 trillion won. Net profit declined 29.7% to 45.6 billion won. Gross profit, calculated by subtracting the cost of sales from revenue, came to 428.1 billion won.
Cheil Worldwide said that despite a decline in overall earnings, major markets including North America and Latin America grew year on year.
Non-affiliate advertisers accounted for 29% of gross profit in the third quarter, up 2.2 percentage points from the same period last year. New advertisers include Amazon Ads, Temasek, Carlsberg, Kakao Commerce and Subway.
By service, the shares were 55% for digital, 29% for retail and non-media advertising (BTL), and 16% for traditional advertising (ATL).
After canceling treasury shares worth 282.8 billion won, equivalent to 12% of its issued shares, Cheil Worldwide plans to buy back and cancel an additional 140 billion won worth of treasury shares by September next year. It also decided to maintain a dividend payout ratio of 60%, based on consolidated net profit.
Cheil Worldwide said, “We plan to defend earnings by stepping up efforts to bring in non-affiliate advertisers.”
[email protected] Kang Myeong-yeon Reporter