1. What Happened? ITCEN CITIES’ 2025 Half-Year Results

ITCEN CITIES reported consolidated revenue of KRW 459.752 billion in the first half of 2025, a 23.1% increase year-on-year. However, standalone revenue decreased significantly, and both consolidated and standalone operating and net income turned negative. Subsidiary growth drove consolidated revenue, but the poor performance of the headquarters weighed down the overall results.

2. Why These Results? Analyzing the Reasons for the Decline

The main reason for the headquarters’ poor performance is the decline in profitability in the SI sector. Although the Cloud sector showed growth, operating profit margins are declining. The deteriorating macroeconomic environment, including high interest rates and exchange rate volatility, also negatively impacted performance. The increase in the consolidated debt-to-equity ratio to 169.9% and the increase in borrowings are raising concerns about financial soundness.

3. What’s Next? Future Outlook and Investment Strategy

ITCEN CITIES’ future depends on restructuring its headquarters business, improving profitability, and strengthening its financial health. The growth potential of the Cloud and AI business is positive, but intensifying competition and macroeconomic uncertainty remain threats. Investors should closely monitor financial risks and business competitiveness.

4. Investor Action Plan

  • Approach short-term investments with caution: Confirmation of earnings improvement is necessary.
  • Consider both growth potential and risks for mid-to-long-term investments.
  • Continuously monitor the company’s financial indicators, business strategies, and changes in the market environment.