Studio Dragon (253450) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue for the group was KRW 1.1246 trillion (+1.2% YoY), but Studio Dragon's revenue fell 58.5% YoY to W90.3bn, and another report notes ₩419.5 billion, down 29.1% YoY, due to fewer lineups and drama releases.

• Operating profit for the group rose 113.8% to KRW 15.8 billion, but Studio Dragon posted an operating loss of W0.9bn and another report shows operating income of ₩31.0 billion, down 48.0% YoY.

• Net loss for the group was KRW 531.4 billion due to one-off events, while Studio Dragon reported a net loss of W6.1bn and another report shows net income of ₩22.2 billion.

• Korean content and K-pop drove global sales, but Studio Dragon and Fifth Season faced challenges from delayed projects and industry strikes.

• The company is focused on profitability, global expansion, and leveraging content IP, with recovery expected in 2025.

Financial highlights

• Consolidated revenue: KRW 1.1246 trillion (+1.2% YoY); Studio Dragon revenue: W90.3bn (−58.5% YoY) or ₩419.5 billion (−29.1% YoY); operating profit: KRW 15.8 billion (+113.8% YoY); Studio Dragon operating loss: W0.9bn; operating income: ₩31.0 billion (−48.0% YoY).

• Net loss: KRW 531.4 billion for the group, Studio Dragon net loss: W6.1bn, net income: ₩22.2 billion.

• TVING revenue: KRW 121.3 billion, operating loss: KRW 7.1 billion; Fifth Season revenue: KRW 108.4 billion, operating loss: KRW 23.2 billion.

• Cash and cash equivalents at Q3-end: W134.8bn or ₩134.8 billion.

• Major clients included CJ ENM (₩100.7 billion, 24% of sales).

Outlook and guidance

• Q4 to focus on enhancing channel viewership, profitability in pictures/drama, and leveraging high season in commerce.

• TVING aims for break-even by year-end, with continued subscriber and revenue growth.

• Studio Dragon to boost viewership with new titles, refine 2025 lineup, and expand global partnerships.

• Recovery in programming volume and non-captive channel sales expected in 2025.

• Continued investment in content, technology, and global expansion.