1. Cocoon’s Q2 Earnings: What Happened?

Cocoon reported revenue of KRW 16.7 billion (a 55.46% decrease YoY), operating profit of KRW 4.7 billion, and net income of KRW 15.4 billion for Q2 2025. The decline is primarily attributed to the base effect of large projects in the previous year and an overall decrease in revenue across business segments. However, the operating profit margin significantly improved to 9.24%, suggesting efforts to enhance profitability through cost control and changes in revenue composition.

2. Core Business and New Growth Drivers: Why Are They Important?

Cocoon’s core businesses are data and payment services, which form a stable revenue structure. Digital transformation and the expansion of MyData are expected to drive data service growth. Furthermore, the expansion of online commerce and contactless finance supports the demand for payment services, but managing profitability will be crucial due to intensifying competition in the simple payment market. Cocoon is actively securing future growth engines by investing in new businesses such as MyData, data combination, and digital healthcare. Notably, the entry into the digital healthcare market through the acquisition of VDPLabs is a key development.

3. Key Investment Considerations: What Should Investors Do?

  • Maintaining Profitability and Cost Efficiency: The improved profitability despite declining revenue is positive, but continued cost management efforts are crucial.
  • Performance of New Business Investments: Closely monitor the performance of new businesses, including the acquisition of VDPLabs.
  • Responding to Macroeconomic Changes: Analyze the impact of external factors such as fluctuations in interest rates and exchange rates and develop appropriate strategies.
  • Strengthening Competitiveness: Securing differentiated competitiveness is essential in the face of intensifying competition in the data and fintech industries.

4. Action Plan for Investors

Cocoon is striving to secure core business competitiveness and new growth engines, but the short-term revenue decline may negatively impact investor sentiment. Investment decisions should be made cautiously with a neutral perspective, considering the long-term growth potential and the performance of new businesses. It is advisable to monitor the trend of earnings improvement in the second half and the visibility of new business performance when establishing investment strategies.