Studio Dragon (253450) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was KRW 1.1383 trillion, with operating profit at KRW 700 million, reaching break-even, but profitability was impacted by weak viewership and a sluggish ad market.

• Studio Dragon's Q1 2025 revenue was KRW 133.8 billion, down 30.3% YoY, with operating profit at KRW 4.3 billion and net profit at KRW 2.4 billion, affected by fewer aired episodes and underperforming new IPs.

• Focus remains on content quality, creator-centered Human IP, and global expansion, especially in music, content distribution, and new U.S. and Japanese projects.

• Cash and cash equivalents increased to KRW 207.7 billion at Q1 end, with a strong cash position and no dividend planned for the quarter.

• Strategic focus is on offsetting reduced TV lineup with more originals and leveraging M&A and partnerships for global growth.

Financial highlights

• Q1 2025 revenue: KRW 1.1383 trillion; operating profit: KRW 700 million; Studio Dragon revenue: KRW 133.8 billion, operating profit: KRW 4.3 billion, net profit: KRW 2.4 billion.

• TVING revenue: KRW 88.9 billion, operating loss: KRW 25.7 billion; Fifth Season revenue: KRW 146 billion, operating loss: KRW 17.3 billion.

• Mobile live commerce transaction amount up 92.4% YoY in Q1.

• Local sales increased 52% YoY, while overseas sales fell 39.3% YoY for Studio Dragon.

• Cash flow from operations: KRW 27.3 billion; total assets: KRW 929.8 billion; total equity: KRW 738.6 billion.

Outlook and guidance

• Profitability expected to recover in the second half of 2025, driven by improved content, sports, and ad solutions.

• TV ad market anticipated to rebound in Q2 with better viewership; music business expects improved profitability with new releases and concerts.

• Studio Dragon aims for results improvement in Q2 with new hit IPs, Japanese titles, and a larger lineup (16+ titles) and higher production efficiency (93%+).

• Global content distribution to expand in India and the Middle East in Q2; more global titles and prebuy deals anticipated.

• Capital allocation prioritizes investment in content and global growth; no dividend planned for Q1 2025.