Woowa Brothers, the operator of Baedal Minjok, posted a consolidated operating profit of 592.9 billion won last year, down 7.5 percent from a year earlier.

A filing with the Financial Supervisory Service on Thursday showed consolidated revenue rose 22.2 percent to 5.283 trillion won, taking it into the 5 trillion won club.

Service revenue, including brokerage fees from delivery intermediation services, was tallied at 4.496 trillion won. That was up 26.8 percent from 3.560 trillion won a year earlier. Service revenue accounted for 85.1 percent of total revenue.

Merchandise sales from new businesses such as the Baemin Bmart business were 781.1 billion won, up 3.2 percent from 756.9 billion won a year earlier. Woowa Brothers is selling products it purchased directly for Baemin Bmart.

A Woowa Brothers official explained the fall in operating profit by saying discount and event promotions increased as competition in the delivery platform industry intensified. Investment carried out while launching new services was also cited as a factor behind the decline in operating profit. The company added, "Costs rose as we ran promotions that subsidised the amount per order when launching the 'Hangreut' service in May last year."