T1 Records ₩88.6 Billion in 2025 Revenue, Achieves First Operating Profit

SK Telecom CST1 (hereinafter 'T1') disclosed its 2025 audit report on the 3rd. According to the report, the company achieved its first operating profit since its founding, driven by a significant improvement in detailed operating revenue metrics compared to the previous year.

T1's operating revenue (sales) for 2025 was ₩88.64 billion, an increase of approximately 80.8% from the previous year (₩49.03 billion). Notably, operating profit reached ₩2.51 billion during the same period, marking a successful turnaround from the previous year's loss of ₩8.86 billion. Net income also turned positive, reaching ₩1.23 billion compared to a loss of ₩6.28 billion the year prior.

A regional breakdown of operating revenue shows high growth across all territories. Revenue from the core domestic market in South Korea reached ₩51.79 billion, an 89.7% increase from the previous year (₩27.30 billion).

Growth in overseas markets was also notable. In particular, revenue from the Americas reached ₩23.59 billion, a 93.5% increase from the previous year (₩12.19 billion), serving as a strong driver for international performance. The Asia region grew by 36.1% to ₩10.39 billion, while the Europe region recorded ₩2.87 billion, a 51.3% increase.

When broken down by revenue recognition timing, revenue recognized at a point in time—such as merchandise sales where control is transferred to the customer—saw a significant increase. This revenue reached ₩74.14 billion, an 86.9% increase from the previous year (₩39.67 billion). Revenue recognized over a period of time, such as advertising and sponsorships, also rose by 55% to ₩14.51 billion from the previous year (₩9.36 billion).

Revenue from major clients also increased. Sales to Company A reached ₩12.93 billion (14.6% of total), and sales to Company B reached ₩10.58 billion (11.9% of total), representing increases of 153.8% and 200% respectively compared to the previous year.

Expenditures to support revenue growth also trended upward. Team operating expenses, a core cost for an esports organization, reached ₩30.68 billion, a 25.5% increase from the previous year (₩24.45 billion). Generally, player salaries are included in team operating expenses. Due to strong merchandise sales, the cost of goods sold for merchandise surged by 119% to ₩20.60 billion from the previous year (₩9.40 billion).

Meanwhile, T1 conducted a private placement capital increase on March 5, 2026, following a board resolution, for the purpose of capital expansion and financial structure improvement. The number of shares issued was 4,330, with an issue price of ₩2,630,162 per share, resulting in a total of ₩11.39 billion in capital flowing into the company as of March 26, 2026.

This measure was taken to improve the accumulated deficit (₩74.12 billion as of the end of the fiscal year) and debt ratio (713.1%) resulting from corporate activities, and to secure stable liquidity for future esports business operations.

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