Studio Dragon (253450) Q2 2026 earnings summary

Executive summary

• Q2 2026 operating profit increased by 17% year-over-year to KRW 33.4 billion, despite an 8% revenue decline to KRW 1.2033 trillion, driven by diversified revenue streams and platform expansion.

• Studio Dragon achieved Q2 2026 revenue of KRW 145.3 billion, up 26.9% YoY, with operating profit turning positive at KRW 15.4 billion and margin improving to 10.6%.

• First half 2026 revenue reached KRW 300.6 billion, up 21.1% YoY, with operating income surging 1,509.8% to KRW 21.9 billion, reflecting improved cost efficiency and global sales.

• Growth was supported by strong performance in commerce, music, and content segments, offsetting challenges in film and drama.

• Completed merger with Next Scene in July 2026 to enhance management efficiency.

Financial highlights

• Q2 2026 revenue: KRW 1.2033 trillion (down 8% YoY); operating profit: KRW 33.4 billion (up 17% YoY).

• Studio Dragon Q2 2026 revenue: KRW 145.3 billion (up 26.9% YoY); operating profit: KRW 15.4 billion; net profit: KRW 13.0 billion.

• First half 2026 revenue: KRW 300.6 billion (up 21.1% YoY); operating income: KRW 21.9 billion (up 1,509.8% YoY); net income: KRW 19.6 billion.

• TVING revenue: KRW 140.7 billion, operating profit: KRW 6 billion; FIFTH SEASON revenue: KRW 50.4 billion, operating loss: KRW 8 billion.

• Studio Dragon's distribution revenue grew 37.3% YoY; domestic revenue up 226.7% YoY.

Outlook and guidance

• Expectation of improved ad sales and profitability in H2 2026, with projected upsell of over 30% post-World Cup.

• Studio Dragon to focus on market leadership with large-scale titles, pre-sales, and accelerated IP business in 3Q26.

• Continued global market expansion with new U.S. and Japanese projects and diversification into IP-based merchandise and e-commerce.

• TVING subscriber and ad sales trends remain upward in the medium to long term, despite Q3 seasonality.

• Dividend policy prioritizes reinvestment during the investment phase, with future shareholder returns as profitability stabilizes.