**Estsoft turns to red in the second quarter… “Virtual Human/AI New Business Growth Pain”**
*2nd quarter sales of 21.467 billion won, operating loss of 1.177 billion won*
Estsoft announced on the 11th that it recorded 21.467 billion won in sales and 1.177 billion won in operating loss on a consolidated basis in the second quarter of this year. Due to increased investment in new artificial intelligence (AI) businesses such as virtual humans and labor costs, sales fell 3.1% compared to the same period of the previous year, turning to a loss in the second quarter.
Estsoft explained, “Profitability has temporarily declined due to increases in labor costs for securing development manpower reflected throughout the IT industry, increases in the number of employees, granting stock options to all employees, and increases in costs due to strengthening welfare policies,” said Estsoft.
As of the first half of this year, sales were 45.8 billion won, up 5.1% from the same period last year. Operating profit was 20 million won, down 99.7% from the same period last year.
While investment in new businesses such as the establishment of AI studios continued, operating profit declined sharply as labor costs increased, but new businesses such as AI new businesses, augmented reality (AR)-based commerce, and asset management companies maintained a high growth trend. These new businesses recorded sales of 7.5 billion won in the first half of this year, and their proportion of total sales expanded to 16.5%.
Estsoft said, “In the case of new AI business, sales in the second quarter of this year grew significantly compared to the same period of the previous year and the previous quarter, laying the foundation for a stable profit structure. are expected to be created.â?
In the first half of this year, Estsoft signed a virtual human-related contract and MOU in education, broadcasting, and entertainment fields such as CLASS:y, Cellby Music Music Flat, n.CH Entertainment, and YBM, which debuted through MBC after-school excitement. have.
Jung Sang-won, CEO of Estsoft, said, “Based on the stable cash cow of the entire group, we will continue to invest in the full-fledged expansion of major new businesses such as virtual human and commerce. We expect it to be,â? he said.
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