1. What Happened? Q1 2025 Earnings Breakdown

Hyundai Home Shopping reported revenue of ₩923.8 billion, falling short of market expectations of ₩953 billion. However, operating profit reached ₩30.2 billion, surpassing the estimated ₩29.1 billion. Net income came in at ₩24.8 billion.

2. Why These Results? Analyzing the Drivers

  • Positives: Improved operating profit margin due to efficient cost management, continued positive impact from the inclusion of new subsidiaries like Hyundai L&C and Handsome, and shareholder value enhancement through treasury stock acquisition.
  • Negatives: Persistent decline in home shopping segment revenue, intensified competition and evolving consumer trends, and growing macroeconomic uncertainties related to exchange rates, interest rates, and oil prices.

3. What’s Next? Future Outlook

While business diversification is a positive step, strengthening the core home shopping business and identifying new growth engines are crucial. Effective risk management and adaptation to macroeconomic changes are essential, along with transparent and proactive communication with investors to build trust.

4. What Should Investors Do? Action Plan

The current investment recommendation is ‘Neutral.’ It is advisable to closely monitor the turnaround of the home shopping segment and the performance of new businesses, adjusting investment strategies accordingly. Pay close attention to the implementation and outcomes of strategies aimed at enhancing the competitiveness of the home shopping channel, such as digital transformation and strengthening private brand products.