Cheil Worldwide (030000) Q2 2025 earnings summary

Executive summary

• Gross profit increased by 9% and operating profit rose by 5% year-over-year for H1 2025.

• 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.

• Overseas markets, especially NA/LA/SWA, drove growth through digital and ATL business.

• China returned to net growth in Q2 despite economic headwinds.

Financial highlights

• H1 2025 revenue reached KRW 917.2B, up 9% year-over-year; Q2 2025 revenue was KRW 483.8B, up 7%.

• H1 2025 operating profit was KRW 150.6B, up 5% year-over-year; Q2 2025 operating profit was KRW 92.1B, up 4%.

• Net income for H1 2025 was KRW 79.3B, down 27% year-over-year; Q2 2025 net income was KRW 51.2B, down 22%.

• Seoul Office revenue grew 6% year-over-year in H1 2025, driven by new non-Samsung clients.

• 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.

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

• Continued operational excellence and improved profitability for underperforming businesses.

• Maintain strong shareholder returns and pursue M&A, including offshore operations.