[Click eStock] "Jcontentree, Performance Improves Gradually in the Second Half"

KTB Investment & Securities Issues 'Buy' Rating and 48,000 KRW Target Price... Closing Price on 8th at 34,200 KRW

[Asia Economy Reporter Kum Boryeong] An analysis has emerged that Jcontentree will show improved performance as the second half of the year progresses.

According to KTB Investment & Securities on the 11th, Jcontentree recorded sales of 103 billion KRW and an operating loss of 15.6 billion KRW in the first quarter. Sales decreased by 18.4% compared to the previous year, and operating profit turned to a loss. This was due to losses recorded not only in the film sector, which was expected to be in deficit, but also in the broadcasting sector.

The broadcasting sector posted sales of 51.5 billion KRW and an operating loss of 2.6 billion KRW. This is because the revenue from the hit show "Itaewon Class," which aired in the first quarter, was deferred to the second quarter. "Itaewon Class," which involved significant production costs, established a cultural specialized limited company to attract investors, but ultimately proceeded with Jcontentree's sole investment. Therefore, the sales and costs related to this work will be initially recognized by the cultural specialized limited company and then recognized by Jcontentree. As additional revenue such as video on demand (VOD) continues to be generated after the broadcast ends, the revenue from "Itaewon Class" will be reflected in the second quarter, with the scale estimated to be around 6 to 7 billion KRW.

Nam Hyoji, a researcher at KTB Investment & Securities, explained, "Personnel expenses in the broadcasting sector increased by 1.3 billion KRW compared to the previous year. This is expected to reflect Jcontentree's commitment to establishing a studio system and will lead to strengthening content competitiveness in the future." He added, "In the second quarter, revenue related to 'The World of the Married' will be reflected."

From this month, simultaneous broadcasting on Netflix and the airing of original works in the second half of the year are scheduled. Overseas distribution sales led by Netflix this year are estimated to increase by 78% from the previous year to 111 billion KRW.

KTB Investment & Securities gave Jcontentree a "Buy" investment opinion with a target price of 48,000 KRW. The closing price on the 8th was 34,200 KRW.

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