ITCEN Tech has reported that its cumulative operating profit for the third quarter of this year has exceeded last year's total, driven by increased revenue from public sector operations and large projects, as well as a return to profitability for its subsidiary, ITCEN Cloit.
On November 12, ITCEN Tech announced that its cumulative consolidated operating profit for the third quarter reached 27.6 billion won, a 157.9% increase compared to the same period last year. During this time, revenue rose by 8.4% to 408.5 billion won, with a net profit of 27.8 billion won. The operating profit for the third quarter alone surpassed last year's total operating profit of 20.9 billion won, and the consolidated operating profit margin increased to 6.7%, more than double the 2.8% recorded in the same period last year.
On a separate basis, cumulative revenue for the third quarter increased by 13.5% to 244.2 billion won, while operating profit rose by 29.0% to 24.1 billion won, resulting in an operating profit margin of 9.9%. The company attributed its improved performance to steady growth in public sector operations and large project revenues, along with effective management of selling and administrative expenses at last year's levels.
ITCEN Cloit reported cumulative revenue of 158.2 billion won and an operating profit of 2.8 billion won for the third quarter, marking a turnaround from an operating loss of 8.6 billion won in the same period last year. By restructuring its business to focus on profitability and enhancing project quality and workforce efficiency, the gross profit margin improved from 5.0% to 9.7%, while indirect costs were reduced, leading to a 23.6% decrease in selling and administrative expenses.
ITCEN Tech is also working on integrating its proprietary artificial intelligence (AI) technology into its business operations. Its self-developed small language model (sLLM)-based development support solution, IntelliSen Code, has been applied to over ten projects in the public and financial sectors. Building on its expertise in public and financial services, the company launched the AI solution NExQ.cen in August to assist insurance companies with actuarial analysis and risk management, and in October, it introduced the AI essay coaching service for college entrance exam students, entering the education software as a service (SaaS) market.
ITCEN Cloit is expanding its enterprise AI business centered around its AI agent platform, AgentGo. In September, it launched the AI security solution AgentGo Guard to protect against security threats such as prompt attacks and sensitive information leaks at a group level. ITCEN Tech plans to leverage this in conjunction with its public and financial customer base to target the business automation market.
ITCEN Cloit has also broadened its sports tech business, leveraging its experience in managing international sports events and its cloud-based sports SaaS capabilities. Recently, it made a strategic investment in CUESCO, a domestic billiards scoreboard and digital platform company, and introduced its own brand, CENCUE, expanding its business from a focus on enterprises and institutions to the general consumer market (B2C).
Shin Jang-ho, CEO of ITCEN Tech, stated, “Surpassing last year's total operating profit in just the third quarter is the result of restructuring our business to focus on profitability and meticulously managing costs since joining the group. We aim to leverage our expertise in public projects to grow our proprietary AI services like NExQ.cen and AI Essay Coach, enhancing both growth and profitability.”
* This article has been translated by AI.
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