[Edaily Reporter Kim Hyun-ah ] KTCorporation’s digital marketing subsidiary, Nasmedia Co., Ltd.(089600), significantly increased its operating profit in the third quarter of this year, driven by cost efficiency measures.

kt nasmedia announced on the 9th that it recorded third-quarter revenue of 29.5 billion won and operating profit of 5.7 billion won. While revenue decreased by 5.4% year-over-year, operating profit increased by 50.8%. The operating profit margin stood at 19.2%, an improvement of 7.2 percentage points from a year ago.

By business segment, in the digital advertising division, advertising revenue from online video services (OTT) increased by more than 40% year-over-year. However, segment revenue decreased by 3.6% as advertising spending in the home appliance and retail sectors declined.

In the platform advertising segment, the company’s proprietary outdoor advertising media—including subway lines 1, 2, 5, 7, and 8, as well as the digital outdoor advertising platform “The Square”—continued to grow. Conversely, revenue in this segment fell by 6.6% due to a decline in ad spending by e-commerce advertisers on the mobile advertising platform.

The increase in operating profit despite the decline in revenue was driven by cost-cutting measures. Although costs associated with preparing for the launch of the new outdoor advertising medium, “The Square Gangnam,” were reflected in the third quarter, total operating expenses were reduced by 13.1% year-over-year due to a decrease in bad debt provisions and operational efficiencies in the mobile advertising platform.

In the fourth quarter, kt nasmedia will expand its business by leveraging new out-of-home advertising media and an integrated video advertising platform. Last October, the company unveiled “The Square Gangnam,” a digital out-of-home advertising medium, in the Gangnam Station underground shopping arcade. It also officially launched the integrated video advertising platform “NAP DSP Plus.” The company plans to provide advertisers with integrated services ranging from premium video media selection to ad operations and performance analysis.

Park Pyeong-kwon, CEO of kt nasmedia, stated, “Operating profit increased due to the growth of our out-of-home advertising media, streamlined business operations, and improvements in our cost structure.” He added, “We will expand our premium digital out-of-home advertising media and further enhance our AI-based mobile advertising platform and integrated video advertising platform to boost both growth and profitability.”