[Edaily Reporter Shin Yeong-bin ] HyundaiAutoever(307950)reported increased revenue in the third quarter of this year, driven by demand for the group’s digital transformation, but operating profit declined due to a delayed recovery in its automotive software (SW) business and rising costs.

HyundaiAutoever announced on the 30th that its consolidated operating profit for the third quarter was 68.9 billion won, a 2.6% decrease compared to the same period last year.

Revenue rose 16.2% to 1.2247 trillion won, while net income fell 14.9% to 44.9 billion won. The operating profit margin stood at 5.6%, down 1.1 percentage points from the same period last year.

By business segment, revenue in the Enterprise IT division—comprising System Integration (SI) and IT Outsourcing (ITO)—reached 1.0248 trillion won, a 19.7% increase year-over-year.

SI revenue rose 19.9% to 504.9 billion won, while ITO revenue increased 19.5% to 519.9 billion won. Growth was driven by the Group’s accelerated digital transformation, including cloud services and the implementation of next-generation enterprise resource planning (ERP) systems.

However, improvements in profitability were limited as the proportion of standalone ITO revenue increased. The Enterprise IT division’s gross profit margin fell from 11.1% in the third quarter of last year to 10.1% in the third quarter of this year.

Revenue in the Automotive Software division totaled 199.9 billion won, rising by only 0.8% year-over-year. The gross profit margin fell from 10.6% to 8.5%.

The company explained that revenue recovery has been delayed and profitability constrained by an unfavorable external environment, including U.S. tariffs and geopolitical risks, which have persisted since the second half of last year.

Overseas subsidiaries continued to see revenue growth in key regions. Based on each subsidiary’s financial statements, cumulative revenue for the third quarter was 509.1 billion won in the Americas, 276.4 billion won in Europe, 82.5 billion won in India, and 50.2 billion won in China—representing year-over-year increases of 18.7%, 14.9%, 28.0%, and 13.8%, respectively.

This was driven by the Group’s expanded global IT investments, growing demand for cloud services, and an increase in Connected Car Service (CCS) subscribers.

Cumulative operating profit for the first three quarters of this year was 180.6 billion won, up 1.0% year-over-year. Cumulative revenue rose 16.4% to 3.4111 trillion won.

HyundaiAutoever plans to boost both revenue and profitability through operational efficiency, while pursuing new business opportunities and securing mid- to long-term growth drivers.