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Source: Studio Dragon |
[Alpha Biz= Paul Lee] Samsung Securities forecast on July 4 that Studio Dragon, a leading Korean drama production company, will report weak second-quarter earnings, but is poised for a rebound in the second half of the year.
The firm expects Studio Dragon to post Q2 revenue of KRW 101.1 billion and an operating loss of KRW 2.9 billion, turning from an operating profit of KRW 10.5 billion a year earlier.
Analyst Minha Choi noted, “Q2 underperformance was anticipated given the content lineup. In particular, the delivery of the series My Lovely X was pushed to Q3, resulting in fewer aired episodes than previously projected.”
Choi added that the drama Ask the Stars, which aired in Q1 with a large production budget, will impact Q2 earnings negatively due to amortization expenses being recognized this quarter.
However, a rebound in earnings is likely in H2 as the company has a robust slate of upcoming content. Titles such as Everything Will Come True, The Price of Confession, and Fragmented City are scheduled for release on OTT platforms, alongside a notable increase in TV-bound productions.
“Studio Dragon has solidified its foundation for growth through channel diversification, collaboration with management agencies, and streamlined production processes,” Choi stated. “These efforts will begin to pay off in the second half of the year, driven by an increase in content supply and improved profitability.”
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
