[Edaily Reporter Kim Hyun-ah ] ESTsoft Corp.(047560)posted its highest-ever revenue for the third quarter on a year-over-year basis. Revenue increased as the artificial intelligence (AI), software (SW), and gaming businesses grew, and the company cut its operating loss by more than half through cost-cutting measures. However, it was unable to return to profitability due to continued losses in the asset management division.

ESTsoft Corp. announced in a regulatory filing that it posted consolidated revenue of 27.3 billion won and an operating loss of 1.933 billion won for the third quarter of this year. Revenue increased by 9.5% year-over-year, while the operating loss decreased by 56.8% from 4.476 billion won.

The improvement in performance was driven by the AI/SW and gaming businesses. Revenue in the AI/SW division reached 15.7 billion won, a 19.2% increase compared to the same period last year. The real-time AI avatar service “Perso Interactive,” AI transformation (AX) in the public sector, and AI education businesses all contributed to this growth.

Revenue in the gaming division also rose by 40% to 7.5 billion won, driven by the continued success of the new title “Cabal RED.”

ESTsoft Corp. is also accelerating the commercialization of its AI avatar technology. The company recently launched “BloomingTalk,” a global fan engagement service utilizing the intellectual property (IP) of producer Lee Soo-man’s idol group “A2O Light.” It is also expanding its scope into the retail sector by conducting proof-of-concept (PoC) tests with Olive Young and 7-Eleven.

In contrast, existing businesses underperformed. The portal division saw continued declines in advertising revenue, and the commerce division also experienced lower sales both online and at company-owned stores. Although assets under management increased in the asset management division, it recorded an operating loss of approximately 1.9 billion won due to factors such as a sluggish stock market.

Cost-cutting measures helped reduce the deficit. Although revenue-based commission expenses rose due to business expansion, the company lowered its cost burden by stabilizing the operation of new AI services and applying AI technology to existing businesses. Advertising and promotional expenses decreased by 43.1% year-over-year, and operating expenses fell by 10.3%.

ESTsoft Corp. plans to continue pursuing cost efficiency while driving revenue growth centered on its AI, software, and gaming businesses. However, the key to future performance will be whether revenue growth in these high-growth businesses translates into actual improvements in operating profit.