Microtech Achieves Largest Quarterly Performance Since Inception... Operating Profit Turns Positive

[Asia Economy Reporter Hyungsoo Park] Microtech, a company with a fiscal year ending in June, recorded its highest quarterly performance since its establishment, thanks to the effects of its entertainment business.

Microtech announced on the 18th that its separate sales for the third quarter (January to March) reached 19.739 billion KRW, an increase of 607.7% compared to the same period last year. Operating profit turned positive at 1.04 billion KRW.

The increase in sales was driven by the absorption merger of drama production company Ace Factory, which was acquired last year. In February, Ace Factory signed a supply contract worth 11.68 billion KRW with J Contentree for the drama "If the Weather Is Good, I'd Like to...". In the second half of this year, "Secret Forest 2" will be aired.

On a consolidated basis, third-quarter sales reached 22.082 billion KRW, up 689.4% year-on-year. Operating profit recorded 1.097 billion KRW. Cumulative consolidated sales also increased by 548.6% year-on-year to 38.289 billion KRW. Cumulative operating profit was 936 million KRW.

An official stated, "The results are coming from the entertainment business conducted through subsidiaries such as Bitro, which is engaged in drama production, management, and performance directing," adding, "As demand for content increases, the importance of content suppliers is growing, and the production cost per episode is also rising."

Microtech expects sales from nano masks to begin from July this year. On the 8th, it signed a 38 billion KRW OEM (Original Equipment Manufacturer) contract for mask production with N2Cell.

The official said, "N2Cell, in which Microtech acquired shares, has confirmed contracts worth 150 billion KRW this year," and added, "A significant portion of these contracts will be transferred to Microtech's OEM method."

He continued, "The mask production OEM contract is expected to have a high profit margin," and added, "This year will be a year where the achievements of new businesses will be in the spotlight."

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