[Edaily Reporter Lee So-Hyun ] SOOP(067160) ’s subsidiary, the digital advertising agency PlayD Co., Ltd.(237820), continued to improve profitability in its core advertising business, driven by the acquisition of new advertisers and cost efficiency. On a standalone basis, operating profit posted double-digit growth compared to the previous quarter for the second consecutive quarter.

PlayD Co., Ltd. announced on the 28th that it posted standalone revenue of 8.61 billion won and operating profit of 1.75 billion won for the third quarter of this year. Revenue increased by 9.4% and operating profit by 39.1% compared to the previous quarter. Operating profit also rose by 21.7% year-over-year. The operating profit margin stood at 20.3%, up 5.1 percentage points from the same period last year.

These results were driven by the full-scale reflection of revenue from major advertisers secured in the first half of the year and an increase in video production revenue. Company-wide cost efficiency measures also contributed to the improvement in profitability.

Stand-alone revenue decreased by 9.0% year-over-year due to the spin-off of a subsidiary in the e-commerce business. However, the year-over-year revenue decline narrowed from 19.6% in the second quarter to 9.0% in the third quarter, indicating a recovery in the core advertising business.

Consolidated results also improved. Third-quarter consolidated revenue was 11.567 billion won, and operating profit was 1.653 billion won, representing year-over-year increases of 22.3% and 15.2%, respectively. Compared to the previous quarter, revenue rose 4.0% and operating profit surged 1,754.9%. Net income was 1.855 billion won, a 36.0% increase compared to the same period last year.

The consolidated results reflect improvements in the parent company’s advertising business, revenue growth driven by TV commercials (TVCs) aired by subsidiary BioEssential in the first half of the year, and the effect of consolidating TTL Communications. BioEssential, which had faced profitability pressures due to expanded marketing investments in the first half, succeeded in turning a monthly profit in September.

However, while cumulative consolidated revenue for the first three quarters of this year reached 31.679 billion won—a 17.7% increase year-over-year—operating profit fell 48.3% to 1.644 billion won. Despite improved third-quarter performance, cumulative profitability has not yet recovered to last year’s levels.

PlayD Co., Ltd. is also expanding its artificial intelligence (AI) solutions business, building on improved profitability in its core advertising business. The company is supplying its in-house developed AI solution, “AdInsight,” to Naver and has set out to identify new revenue streams, such as securing sustained revenue through the operation of the solution.

The company also plans to launch an integrated brand within the year that consolidates the advertising and marketing capabilities of SOOP affiliates. The strategy is to combine traditional media advertising (ATL), non-traditional media advertising (BTL), and user interface/experience (UI/UX) capabilities with digital performance marketing to broaden touchpoints with advertisers and expand opportunities for new contracts.

Cho Myung-jin, CEO of PlayD Co., Ltd., stated, “Strengthening our core advertising competitiveness and achieving cost efficiencies are leading to improved financial performance.” He added, “We will further enhance profitability and actively seek new growth opportunities by innovating advertising operations productivity through AI technology and expanding our business portfolio.”