Hancom continued its growth in revenue driven by its artificial intelligence (AI) business, despite a decline in operating profit in the third quarter of this year. AI revenue exceeded three times last year's total, accounting for over 30% of overall sales.
According to Hancom, consolidated revenue for the third quarter reached 92 billion won, a 9.5% increase compared to the same period last year. However, operating profit fell to 9.2 billion won, a decrease of 25.5% year-on-year.
While profitability has somewhat weakened, the growth of the AI business was notable. AI revenue for the third quarter was 14.8 billion won, more than an 80% increase from the previous quarter's 8.2 billion won. Cumulatively, AI revenue for the year reached 28.3 billion won, surpassing last year's total of 8.9 billion won. The share of AI in total revenue also exceeded 30%.
Revenue from new businesses, including AI, amounted to 30.9 billion won, marking a 67.2% increase from the same period last year. The share of new businesses in total revenue expanded to 64.1%, indicating a shift from reliance on traditional document software to a focus on AI and new ventures.
However, increased investments in research and development and personnel for the expansion of the AI business contributed to the decline in operating profit. Hancom is ramping up investments for the commercialization of its AI workforce platform, Nomadian, and the Agentic OS. Despite this, the operating profit margin remained in the 20% range, maintaining profitability in existing operations.
The company is also restructuring its business around AI. This year, Hancom has been divesting shares in subsidiaries with relatively low synergy with its AI initiatives, including Hancom Space, ThinkFree, and Madex Company. One-time costs incurred during this process were reflected in the third quarter. With the exclusion of non-core subsidiaries from consolidation, the company expects that the growth of its AI business will be more directly reflected in its consolidated results moving forward.
Hancom plans to concentrate the resources gained from the divestitures on its global AI business. The company is particularly focused on establishing its AI workforce platform, Nomadian, in the overseas market, targeting small and medium-sized businesses (SMBs) with fewer than 10 employees and solo entrepreneurs in the U.S. A closed beta test is scheduled for December, with a goal for a global official launch in March next year.
Kim Yeon-soo, CEO of Hancom, stated, "The third quarter confirmed that the share of AI revenue has surpassed 30%, marking a shift in Hancom's growth focus toward AI. Even while increasing investments ahead of the Nomadian launch, we maintained a profit margin in the 20% range." He added, "We will concentrate the resources secured from the divestiture of non-core subsidiaries on Nomadian and aim to significantly grow our overseas AI revenue starting with the global launch in March next year."
* This article has been translated by AI.
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