Hyundai Autoever ( A307950) Q2 2024 earnings summary

Executive summary

• Revenue in 2Q24 reached KRW 918 billion, up 25.5% sequentially and 21.8% year-over-year.

• Operating profit surged to KRW 69 billion, a 123.0% increase quarter-over-quarter and 30.0% year-over-year.

• Net profit doubled to KRW 53 billion, up 101.8% sequentially and 35.1% year-over-year.

• Operates in IT services (SI, ITO) and vehicle software (SW) platforms, focusing on digital transformation and mobility solutions.

• Major revenue from Hyundai Motor Group affiliates, with 91% of sales to related parties in H1 2024.

Financial highlights

• H1 2024 consolidated revenue: ₩1,649.4 billion, up 16.2% year-over-year.

• Operating profit: ₩99.3 billion, down 19.1% year-over-year.

• Net profit attributable to owners: ₩77.0 billion, down 44.1% year-over-year.

• Gross profit for 2Q24 was KRW 108 billion, up 57.6% quarter-over-quarter and 23.1% year-over-year.

• Operating margin improved to 7.5% in 2Q24 from 4.2% in 1Q24 and 7.0% in 2Q23.

Outlook and guidance

• Management expects continued growth in automotive software and IT outsourcing, driven by digital transformation and premiumization trends.

• Continues to invest in R&D for vehicle SW, smart factory, and 5G private networks.

• Plans to expand 'mobilgene' SW platform to new mobility sectors and enhance global competitiveness.