[Click eStock] "34 New Releases This Year... Studio Dragon Forecasts 550 Billion KRW in Sales"

Securing Stable Overseas Distribution Channels through Contract with Netflix

[Asia Economy Reporter Minwoo Lee] Studio Dragon is expected to continue its stable growth by releasing up to 34 new works this year.

On the 10th, DB Financial Investment forecasted that Studio Dragon would achieve sales of 556.1 billion KRW and an operating profit of 52.9 billion KRW this year, representing increases of 19.3% and 39.2% respectively compared to last year.

The annual lineup is expected to increase from 29 works last year to 32-34 works this year, including 2 Netflix Originals and 3 tentpole projects, along with an increase in the Netflix Original margin rate (assuming about 20% for Sweet Home). Shin Eun-jung, a researcher at DB Financial Investment, explained, "Revenue sources are expected to increase through diversification of intellectual property (IP), and stable overseas sales have been secured through equity contracts with Netflix. The establishment of a full-fledged US corporation enables collaboration with global companies and various investment points are valid."

Meanwhile, the fourth-quarter performance last year is estimated to be lower than expected. Sales are projected to fall 23.2% year-on-year to 95 billion KRW, and operating profit is expected to drop 1228% to 5.3 billion KRW. Researcher Shin said, "The number of productions classified in the fourth quarter is expected to decrease to 6, lower than anticipated, due to the absence of the OCN drama 'Slot' and partial recognition of 'Crash Landing on You.' Additionally, some remaining costs of last year's tentpole production expenses are expected to be amortized in the fourth quarter. Although market expectations were somewhat high, it appears that fundamentals have not been damaged or changed."

DB Investment Securities still selected Studio Dragon as the top pick within the industry. The investment opinion is 'Buy,' with a target price of 107,000 KRW. The closing price on the previous day was 82,600 KRW.

This content was produced with the assistance of AI translation services.