COWAY (021240) Q2 2024 earnings summary

Executive summary

• Achieved record-high quarterly revenue, operating profit, and net profit in 2Q'24, meeting 49% of annual revenue and 53% of operating profit guidance.

• Domestic business saw double-digit growth in rental gross adds and revenue, with continued net adds growth despite more matured subscribers.

• Overseas subsidiaries maintained growth, with Malaysia and Thailand showing strong account and revenue increases, while the U.S. faced a YoY revenue decline due to a high base effect.

Financial highlights

• 2Q'24 consolidated revenue: KRW 1,082.3bn (+7.6% YoY); operating profit: KRW 211.2bn (+8.8% YoY); net profit: KRW 154.2bn (+43.9% YoY).

• 1H'24 revenue: KRW 2,084.1bn (+6.6% YoY); operating profit: KRW 404.9bn (+9.5% YoY); net profit: KRW 281.8bn (+21.3% YoY).

• Total rental accounts reached 9.90mn (+5.4% YoY), with overseas accounts comprising 34% (+2%p YoY).

Outlook and guidance

• 2024 guidance achievement at 49% for revenue and 53% for operating profit as of 2Q'24.

• Targeting stable rental account growth and continued expansion of overseas proportion.