Cheil Worldwide (030000) Q2 2025 earnings summary

Executive summary

• H1 2025 gross profit increased by 8.7% to KRW 917.2 billion and operating profit rose by 5.5% year-over-year.

• Digital services now comprise 55% of business, up 9% year-over-year.

• Non-Samsung client revenue grew 12% year-over-year, now representing 28% of total.

• China returned to net growth in Q2 despite economic headwinds, though some regions saw revenue declines.

• Dividend of KRW 1,230 per share (KRW 124.6 billion total) was paid in April 2025.

Financial highlights

• H1 2025 revenue reached KRW 2,158.3 billion, up 2.4% year-over-year; gross profit was KRW 917.2 billion, up 8.7%.

• H1 2025 operating profit was KRW 150.6 billion, up 5.5% year-over-year; net income was KRW 79.3 billion, down 27.1%.

• Basic EPS: KRW 782 (down from KRW 2,049 in FY2024).

• Cash and cash equivalents at period end: KRW 582.8 billion.

• Subsidiaries' revenue increased 9% year-over-year in H1 2025, with strong growth in NA and LA.

Outlook and guidance

• H2 2025 aims for top-line growth rate of +5% and margin defense.

• Focus on expanding digital, retail, and data-centered businesses, including AI-driven marketing.

• Plans to reinforce expertise in industries like automobile, healthcare, travel, and F&B.

• Continued operational excellence and improved profitability for underperforming businesses.

• Domestic ad market faces headwinds from economic uncertainty, but digital and performance-based segments are forecast to expand.