[Edaily Reporter KYUNG GYEYOUNG ] CheilWorldwide’s third-quarter earnings stagnated as major clients streamlined their marketing budgets, compounded by the impact of the strong won.

CheilWorldwide(030000)The company announced on the 30th that its third-quarter consolidated gross profit (revenue minus cost of goods sold) was 428.1 billion won, a 6.4% decrease compared to the same period last year. Operating profit for the same period was provisionally reported at 77.0 billion won, down 19.7%, while net income fell 29.7% to 45.6 billion won.

CheilWorldwide’s revenue contracted as major clients streamlined their marketing budgets. Given that overseas operations account for over 70% of its business, the decline in the won-dollar exchange rate (a stronger won) also had an impact.

However, CheilWorldwide explained that it is managing to maintain its performance by expanding its base of non-affiliated advertisers. As of the third quarter, non-affiliated clients accounted for 29% of gross profit, up 2.2 percentage points from the third quarter of last year. CheilWorldwide has secured new advertisers including Amazon Ads, Temasek, Carlsberg, Kakao Commerce, and Subway.

By service category, digital accounted for the largest share at 55%, followed by retail and BTL at 29%, and ATL at 16%.

On the same day, CheilWorldwide also announced plans to enhance shareholder value. Having already retired 282.8 billion won worth of treasury stock, the company plans to purchase and retire an additional 140 billion won worth of treasury stock by September of next year. The company added that it would maintain its dividend payout ratio of 60% based on consolidated net income.