1. What Happened? Mega MD’s Earnings Decline
Mega MD’s H1 2025 revenue decreased by 6.7% year-on-year to KRW 18.14 billion, and operating profit plummeted by 61.7% to KRW 716 million. Net income also decreased by 34.4% to KRW 1.224 billion.
2. Why Did This Happen? Causes of the Decline
The main cause of the decline in sales is the poor performance of the professional and certification acquisition sectors. The company’s response to increased competition and changing educational trends seems to have been insufficient. A significant increase in selling, general, and administrative expenses also contributed to the decline in profitability.
3. What’s Next? Future Outlook and Investment Strategy
In the short term, the sluggish performance is likely to continue. However, the company’s stable educational business base, its own technology, and the potential for increased business efficiency through the merger with its subsidiary suggest long-term growth potential. The current stock price appears undervalued, but a cautious investment approach is needed considering the short-term earnings decline and macroeconomic uncertainties.
4. What Should Investors Do? Key Investment Points
- Second half earnings improvement
- Performance of new businesses (e.g., mail order business)
- Synergy effects from the merger with MegaLand
- The company’s response to changes in the education market