1. Q2 2025 Performance: The Power of Tax Refunds
Global Tax Free achieved a turnaround in Q2 2025, reporting revenue of ₩79.2 billion and operating profit of ₩13.3 billion. The tax refund business, contributing 87.5% of total revenue, proved to be the key growth driver. The cosmetics segment also saw significant improvement with 61% growth.
2. Segment Breakdown: Tax Refunds vs. Webtoons
- Tax Refunds: Surging 46% on the back of increased international tourism and the K-beauty boom. Exchange rate volatility remains a concern.
- Cosmetics (Swanicoco): Achieved 61% growth thanks to strengthened online presence and enhanced product competitiveness. Cost management is crucial.
- Webtoons (Fingerstory): Revenue declined 53.5% due to business restructuring. Efforts are underway to improve profitability through platform enhancements and marketing.
3. Investment Takeaways: Opportunities and Risks
Opportunities: Steady growth in tax refunds, promising growth trajectory in cosmetics, and a strong financial position.
Risks: Exchange rate fluctuations, struggling webtoon business, and potential global economic slowdown.
4. Investment Strategies: Short-Term vs. Long-Term
- Short-Term: Focus on the impact of the peak season for tax refunds and upcoming earnings releases.
- Long-Term: Monitor the turnaround of the webtoon business and the results of new business investments.
Frequently Asked Questions
What are Global Tax Free’s main businesses?
Global Tax Free’s main businesses are tax refunds, cosmetics (Swanicoco), and webtoons (Fingerstory). Currently, the tax refund business contributes the largest portion of revenue.
What are the key risks to consider when investing in Global Tax Free?
Exchange rate fluctuations and the underperformance of the webtoon business are key risks to consider. The potential for a global economic slowdown should also be monitored.
What is the outlook for Global Tax Free?
The outlook is positive, given the consistent growth of the tax refund business and the growth trajectory of the cosmetics segment. However, the turnaround of the webtoon business remains a critical factor.
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