The Three Key Implications of Toss Achieving Its First Quarterly Profit

Toss, the mobile financial service operated by Viva Republica, has achieved its first-ever quarterly profit since its establishment 11 years ago.

Toss, the mobile financial service operated by Viva Republica, has achieved its first-ever quarterly profit since its establishment 11 years ago. This milestone highlights Toss's strength as a comprehensive financial platform and demonstrates the profitability of its subsidiaries. This blog explores the three key implications of Toss’s first quarterly profit.

Toss, founded in 2013, started with simple remittance services and has since grown into a comprehensive financial platform with various services including internet banking, securities, and insurance. Achieving a quarterly profit is a significant milestone for Toss, marking a turning point from its history of accumulated losses. This achievement carries three key implications:

1. Validation of Comprehensive Financial Platform Competence

   Toss reported operating revenues of 914.1 billion KRW for the first half of the year, setting a record for its highest-ever revenue. This represents a 39.7% increase compared to the same period last year, demonstrating significant growth in both its Consumer and Merchant services. The Consumer service segment alone saw revenue of 265.1 billion KRW, up 72.3% from the previous year, indicating robust profitability.

2. Proof of Subsidiary Profitability

   Toss's various subsidiaries have also reported profits, reinforcing its position as a comprehensive financial platform. Notably, Toss Securities and Toss Bank reported operating revenues of 175.1 billion KRW and 24.4 billion KRW, respectively, and successfully transitioned to profitability. Other subsidiaries like Toss Insurance, Toss Income, and Toss CX also showed positive financial results.

3. Challenge to Achieve Annual Net Profit

   With this quarterly profit, Toss aims to achieve its first annual net profit. Successfully reaching this goal would mark a pivotal moment in Toss’s growth trajectory and could enhance investor confidence and contribute to the company’s long-term development. This accomplishment represents a significant step toward sustainable growth.

CEO Seunggun Lee stated, “The balanced growth of our services has been the driving force behind our record performance,” and emphasized that Toss will continue to provide the best financial experiences and innovative services to its users.

Toss’s first quarterly profit not only signifies revenue growth but also underscores its competence as a comprehensive financial platform and the improved profitability of its subsidiaries. Looking forward, achieving an annual net profit will be a key milestone, demonstrating sustained growth and delivering enhanced financial services to users. We anticipate a bright and innovative future for Toss.