1. What Happened? Danal’s H1 2025 Performance

Danal reported revenue of KRW 113.2 billion (down 16.5% YoY), operating profit of KRW 3.3 billion (down 68.1% YoY), and a net loss of KRW 20.1 billion for H1 2025. Both revenue and operating profit declined, with the net loss figure particularly concerning.

2. Why These Results? Unpacking the Underperformance

Danal’s struggles stem from a combination of increased investment costs, underperforming subsidiaries, and intensifying competition. Initial expenses related to new business ventures and international expansion weighed heavily on the results. Furthermore, increased competition in the payments market and macroeconomic uncertainty contributed to the decline.

3. What’s Next? Danal’s Future Outlook

Danal continues to invest in future growth drivers like AI, virtual assets, and K-content, while also strengthening global partnerships. These efforts could position the company for long-term success. However, in the near term, improving profitability and ensuring financial stability are paramount.

4. What Should Investors Do? Key Investment Takeaways

  • Cautious Approach: Given the current underperformance and financial uncertainty, investors should approach Danal with caution.
  • Monitor Key Metrics: Closely track profitability trends, the performance of new businesses, debt management, and risks related to Tmon.
  • Long-Term Perspective: Consider Danal’s innovative business model and growth potential from a long-term investment perspective.