1. What Happened?: YBM Net’s H1 2025 Performance

YBM Net reported KRW 11.9 billion in revenue for the first half of 2025, exceeding expectations. However, operating profit was -KRW 100 million, and net income was KRW 0, highlighting profitability concerns. Year-over-year, revenue decreased, and both operating and net income saw significant declines.

2. Why?: Unpacking the Profitability Dip

The decline in profitability can be attributed to increased selling, general, and administrative expenses (SG&A), particularly in advertising and commissions. Increased investment in AI-driven initiatives and heightened competition contributing to higher marketing costs are likely factors. The continued losses from the ECC division also played a role.

3. What’s Next?: Outlook and Investment Strategy for YBM Net

YBM Net’s strong brand recognition, expertise in language education, overseas expansion efforts, and investments in AI and edutech position the company for long-term growth. However, key challenges remain, including consistent profitability improvement, addressing losses in the ECC division, establishing a differentiated strategy in the competitive edutech market, and navigating macroeconomic uncertainties.

4. Investor Action Plan: Key Investment Considerations

  • Cost Management and Profitability Improvement: Efficient SG&A management and business restructuring will be crucial for profitability recovery.
  • Tangible Results from AI Initiatives: Investors should look for concrete achievements from AI-powered services like ‘Picto’ and ‘AI Wybot.’
  • Global Expansion Strategy: Building on the success in the Japanese market, YBM Net’s global expansion strategy will be a key area to watch.