What Happened? Megastudy Beats Earnings Expectations
Megastudy reported revenue of KRW 64.7 billion (a 3.2% YoY decrease) for H1 2025. However, driven by strong performance in its leisure segment, the company achieved an operating profit of KRW 10.5 billion (a 26.7% YoY decrease) and a net profit of KRW 12.9 billion (a 0.9% YoY increase), exceeding market expectations.
Why This Result? Leisure Business Growth vs. Education Segment Struggles
The leisure business (golf course operations) spearheaded the earnings improvement, with revenue reaching KRW 15.9 billion (a 6.9% YoY increase) and operating profit at KRW 4.6 billion (a 29.9% YoY increase). Conversely, the education and publishing segments continued to struggle due to a declining student population and intensified competition.
What’s Next? Opportunities and Risks
- Positive Factors: Continued growth in the leisure segment, robust financial health, diverse investment portfolio.
- Negative Factors: Sluggish performance in the traditional education business, difficulties in digital transformation of the publishing segment, macroeconomic uncertainties.
Investor Action Plan: Key Investment Strategies
- Focus on growth drivers by expanding the leisure business and innovating the education segment.
- Prioritize cost efficiency and profitability improvements.
- Manage macroeconomic risks, including exchange rate volatility.
- Strengthen ESG management practices.