[Edaily Reporter Lee So-Hyun ] FLITTO Inc.(300080), a company specializing in artificial intelligence (AI) data and solutions, posted an operating profit of approximately 1.4 billion won in the second quarter of this year, returning to profitability after posting a loss in the previous quarter.

However, on a cumulative basis for the first half of this year, both revenue and operating profit decreased compared to the same period last year. FLITTO Inc. expects revenue growth and improved profitability in the second half of the year, as a global data construction contract worth 31.5 billion won will begin to be reflected in revenue starting in the third quarter.

According to the semi-annual report FLITTO Inc. disclosed on the 11th, the company recorded consolidated revenue of 8.10622 billion won, operating profit of 1.39816 billion won, and net income of 1.55585 billion won for the second quarter of this year. Compared to the same period last year, revenue decreased by 13.6%, operating profit by 42.5%, and net income by 33.1%.

However, performance improved compared to the previous quarter. In the first quarter, FLITTO Inc.’s revenue was approximately 5.2 billion won, with an operating loss of about 64 million won. In the second quarter, revenue increased by 55.5% from the previous quarter, and the company returned to profitability. The company explained that its concentrated investment in research and development (R&D) during the first quarter led to expanded sales of its AI translation and interpretation solutions.

On a cumulative basis for the first half of the year, the company recorded consolidated revenue of 13.32022 billion won, operating profit of 1.33406 billion won, and net income of 1.72322 billion won. Compared to the same period last year, revenue decreased by 4.8%, operating profit by 48.8%, and net income by 32.1%.

FLITTO Inc. highlighted the growth momentum in its new AI translation and interpretation solutions business. Cumulative revenue from the solutions segment for the first half of this year was approximately 2.43 billion won, a 175% increase compared to the same period last year. Second-quarter revenue from the solutions segment was approximately 1.71 billion won, up 140% from the previous quarter.

FLITTO Inc. explained that its real-time translation and interpretation solution, “Live Translation,” is being adopted at global conferences and international business events, and that its AI solution, “Chat Translation,” has also been contributing to performance since its launch late last year.

The proportion of overseas revenue was also high. FLITTO Inc. announced that it generated approximately 62% of its consolidated revenue for the first half of this year from overseas markets. The global data infrastructure contract worth 31.55 billion won, announced in June, is scheduled to be recognized as revenue starting in the third quarter upon completion of delivery. The value of this contract is equivalent to approximately 88% of the company’s consolidated revenue for the previous year.

Orders from the public sector are also continuing to come in. FLITTO Inc. announced that it recently secured data infrastructure projects from major public institutions, including the National Institute of the Korean Language, the Institute for Information & Communications Planning & Evaluation, and the Small Business and Market Promotion Corporation.

Yoon Min-yong, FLITTO Inc.’s Chief Financial Officer (CFO), stated, “The operating loss in the first quarter of this year resulted from strategic spending to strengthen the competitiveness of our AI solutions, and the immediate results—a 175% surge in cumulative solution revenue for the first half of the year—proved through the numbers that our investment strategy was on the right track.” He added, “As large-scale global orders will directly translate into substantial earnings starting in the third quarter, we aim to simultaneously achieve revenue growth and maximize profits in the second half of the year.”

Lee Jeong-soo, CEO of FLITTO Inc., said, “Our bold investment in R&D is translating into FLITTO Inc.’s unique and overwhelming solution competitiveness, allowing us to firmly establish our position in the global market.” He added, “In the second half of the year, we will fully launch data partnerships with global Big Tech companies and successfully complete major government-led B2G projects, thereby establishing ourselves as an indispensable global leader in the AI industry.”