Studio Dragon (253450) Q2 2024 earnings summary

Executive summary

• Consolidated Q2 2024 revenue reached KRW 1.1647 trillion, up 11% year-over-year, with operating profit at KRW 35.3 billion, marking a turnaround.

• Despite a 49% reduction in new titles, overseas revenue was solid, driven by high-budget originals and ASP expansion.

• Operating profit was supported by old library sales and strong individual titles like 'Queen of Tears' and 'Marry My Husband.'

• Leadership changes at CJ ENM and Studio Dragon focused on content competitiveness and profitability.

• Hit series such as 'Queen of Tears' and 'Hierarchy' led global streaming rankings.

Financial highlights

• Entertainment revenue: KRW 792.8 billion; operating profit: KRW 7.8 billion.

• Studio Dragon Q2 2024 revenue: KRW 137.1 billion, down 16% YOY; operating profit: KRW 10.5 billion, down 35.7% YOY.

• H1 2024 revenue: ₩329.2 billion, down 12.1% YOY; operating profit: ₩32.0 billion, down 15.6% YOY.

• Tving revenue: KRW 107.9 billion; operating loss reduced to KRW 11.7 billion.

• Fifth Season revenue: KRW 157.2 billion; operating loss: KRW 20.2 billion.

Outlook and guidance

• Focus on profit-driven management, global studio growth, and midterm business strategy improvements.

• Tving aims to enhance traffic and premium content, with expectations for a turnaround in the second half.

• Recovery in TV drama scheduling and non-captive channel expansion expected in 2025.

• Upcoming 3Q24 lineup includes major releases on Netflix and tvN.

• Continued focus on global content sales and partnerships with major OTT platforms.