Multinational platform operators Netflix and Google each reported in their first full-year comparative disclosure to Korean authorities 52 percent and 33 percent jump in revenue and around 90 percent surge in operating profit as streaming becomes the mainstream source for entertainment for South Koreans.

Netflix Service Korea, the Korean affiliate of global streaming company Netflix, Thursday said its 2021 operating profit came to 17.1 billion won ($13.89 million), up nearly 95 percent on year over sales of 631.6 billion won, gaining 52 percent rise from the previous year. Net profit was 13.27 billion won, up by a 109.7 percent from 6.33 billion won in 2020.

Income from streaming services amounted to 629.5 billion won last year, up 57.9 percent from 398.8 billion won in 2020. Cost of sales were 533.4 billion won, of which 516.6 billion won was marked as fee paid to Netflix Group.

Netflix started its streaming service in Korea in 2016 and became subject to reporting earnings from April 2021 under the revised Act on External Audit of Stock Companies.

Meanwhile, Google Korea said its 2021 sales grew 32.8 percent on year to 292.3 billion won. Operating profit jumped 88.4 percent on year to 29.4 billion won, and net profit 152.1 percent to 15.6 billion won. Corporate tax for last year reached 13.8 billion won, up 43.1 percent from 2020.

Google Korea’s mainstay business is resale of online advertising products and services and related support in Korea. Sales related to its app market Google Play Store are not included in Google Korea’s earnings report as they go under Google’s subsidiary in Singapore.

By Pulse

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