1. Q2 2025 Earnings Highlights

Paradise Co.’s Q2 results present a mixed picture. Operating profit showed strong performance, but revenue and net income were disappointing. The significant decline in net income warrants a closer look at non-operating factors.

  • Revenue: KRW 284.5B (YoY +7%, -0.47% vs. consensus)
  • Operating Profit: KRW 42.9B (YoY +33.75%, +16.26% vs. consensus)
  • Net Income: KRW 20.9B (YoY +18.75%, -8.73% vs. consensus)

2. Analyzing the Underperformance

The slowdown in revenue growth is likely attributed to increased competition and external environmental changes. The sharp decline in net income may be due to non-operating income/expenses and corporate tax expenses. More details will be available in future disclosures.

3. Investment Strategy: HOLD

A cautious approach is recommended at this time. Investors should monitor future earnings performance, analyze the reasons for the decline in net income, and observe debt management before making investment decisions.

4. Key Investment Points

  • Earnings improvement and guidance from Q3 onwards
  • Analysis of the decline in net income
  • Customer acquisition and revenue growth strategies
  • Debt management and financial structure improvement

5. Key Risk Factors

  • Global economic slowdown
  • Changes in quarantine policies and geopolitical risks
  • Increased volatility in exchange rates and interest rates