On the 14th, Yello Mobile (CEO Sang Hyuk Lee) announced its 2016 sales to be 442.8 billion won. Despite the absence of additional mergers and acquisitions in 2016 and the separation of 14 affiliates to focus on core businesses, sales increased from its previous year. Its annual revenue totaled 313.8 billion won, which represents a 41% growth. The annual sales of Yello Mobile’s five business divisions was 87 billion won for the shopping division, 8.9 billion won for the media division, 122.2 billion won for the digital marketing division, 43.5 billion won for the travel division, and 187.4 billion won for the O2O division.
Annual operating costs totaled 28 billion won, a 41% decrease from the previous year, and were affected by advertising costs of 43 billion won, amortization of intangible assets of 12.6 billion won, stock compensation of 6.5 billion won, restructuring costs used to improvement management efficiency, and other measures to prepare for IPOs. The net loss amounted to 142.4 billion won due to non-operating expenses such as goodwill impairment. In the settlement of accounts, goodwill of 63.2 billion won was temporarily reflected to reduce the residual goodwill on accounting.
Yellow Mobile stated, “Our sales growth was 41% without additional mergers and acquisitions last year, and cash generation is continuing to improve. By adopting a conservative settlement strategy in preparation for IPO, we eliminated uncertainty about accounting costs. In addition, we will increase our corporate value further by solid sales growth and stable profit creation in 2017.”
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