Studio Dragon (253450) Q4 2025 earnings summary

Executive summary

• Achieved tangible results in global expansion and business model enhancements, with content ranking #1 in the 2025 FUNdex for 27 weeks and five of the top 10 K-dramas on TVING.

• Diversified profit models through strategic IP design, fan meetings, and goods sales, with notable global production successes such as "Marry My Husband" in Japan and first joint production original ranked #1 among Amazon Japan Originals.

• TVING's AVOD subscriber base and ad revenue grew 84% YoY, and Mnet Plus revenue surged 250% YoY.

• 4Q25 revenue was W145.9bn, up 11.7% YoY, and operating profit surged 246.3% YoY to W18.5bn, driven by lineup growth, strong pre-sales, and robust library sales.

• Global appeal strengthened, with a 4.1% share of global TV viewing on Netflix in 2H25, up 1.0%p from 1H25.

Financial highlights

• Q4 2025 revenue: KRW 1.4378 trillion, a decrease YoY; operating profit: KRW 86 billion, more than doubling YoY.

• Studio Dragon annual revenue: KRW 530.7 billion; operating profit: KRW 30.4 billion. Q4 revenue: KRW 145.9 billion; operating profit: KRW 18.5 billion; margin: 12.7%.

• TVING Q4 revenue: KRW 118.8 billion; operating loss: KRW 4.1 billion (lowest ever).

• FIFTH SEASON Q4 revenue: KRW 184.7 billion; operating profit: KRW 10.2 billion.

• Net non-operating loss: KRW 133.3 billion, mainly from copyright and intangible asset losses, with YoY decrease.

Outlook and guidance

• 2026 targets over 25 titles, including 10+ tentpole and 9+ original titles, aiming for enhanced cost efficiency and IP monetization diversification.

• TVING expects further loss reduction and potential break-even in some quarters of 2026, with continued investment for top-line growth.

• FIFTH SEASON to focus on profitability over top-line growth, with 3-4 titles planned for 2026.

• Studio Dragon plans to normalize lineup with 25+ titles, expand global-bound originals, and pursue AI-driven production efficiency.

• Strategic pillars include multi-platform expansion, AI-driven production efficiency, and new IP business launches.