Coinone, 3Q Sales Doubled, But… 2 Consecutive Quarters of Deficits

The sales of the virtual asset exchange Coinone in the third quarter increased by nearly double compared to the previous quarter, but it failed to turn a profit.

According to the quarterly report of Com2uS Holdings on the 18th, Coinone's third-quarter sales were recorded at 27.4 billion won. It increased by 84% compared to the previous quarter (14.9 billion won). However, it failed to avoid operating losses this quarter as well. Coinone recorded a net loss of 7.9 billion won in the third quarter, recording a deficit for two consecutive quarters. However, the deficit decreased slightly compared to the previous quarter's net loss of 8 billion won.



A Coinone official said, "The virtual asset market was greatly depressed in the third quarter due to the impact of the global liquidity contraction, such as the BTC halving, until the bull market starts, which is the reason for the deficit in the third quarter."

As the deficit continues, Com2uS Holdings, the second largest shareholder (38.42%) of Coinone, recorded equity method losses in the tens of billions of won. The equity method loss from Coinone in the last quarter was 3.1 billion won. Com2uS Holdings also recognized an equity method loss of 4.7682 billion won from Coinone in the previous quarter.

Due to the investment loss in Coinone, Com2uS Holdings' investment income from affiliated companies in the third quarter was only 1 billion won, a decrease of 83% compared to the same period last year. Com2uS Holdings said in its third-quarter earnings report that "the investment income from affiliated companies decreased due to the deterioration of Coinone's performance."

Coinone is focusing on the community service within the exchange to escape the deficit in the fourth quarter. Last month, Coinone created the 'Arcade' menu, integrating investor bulletin boards, ranking boards, and real-time chats into a community service. A Coinone official said, "As the virtual asset market is showing an upward trend from the US presidential election, we are focusing on attracting new investors through the community service, which is the only one in the exchange. Positive indicators are coming out in terms of new subscriber numbers and trading volume, so we are hopeful for performance improvement in the fourth quarter."

Kim Jeong-woo, reporter

woo@decenter.kr