[Click eStock] “SBS, Profitability Improvement to Maximize in the First Half of Next Year”

[Asia Economy Reporter Eunmo Koo] An analysis suggests that SBS's profitability improvement will be maximized in the first half of next year.

Sejong Hong, a researcher at Shinhan Financial Investment, estimated in a report on the 27th that SBS's separate basis sales for the third quarter of this year will increase by 13.7% compared to the same period last year to 187.4 billion KRW, and operating profit will turn positive to 7.4 billion KRW. Researcher Hong explained, "We can get a good hint from the third-quarter performance of Cheil Worldwide, the leading domestic advertising company," adding, "Cheil Worldwide's headquarters broadcasting gross profit increased by 81.5%, driving scale expansion, which suggests that the terrestrial broadcasting situation was better than expected."

Profitability improvement is expected to be maximized in the first half of next year. Researcher Hong forecasted, "Operating profits on a separate basis for the first and second quarters of next year are expected to increase significantly compared to the previous year (deficit), reaching 1.1 billion KRW and 7.4 billion KRW respectively, and advertising sales are also expected to grow in double digits," adding, "Business revenue will establish itself as a core segment of the company, led by high growth in YouTube and VOD (Video On Demand)."

The target stock price was raised from 21,000 KRW to 23,000 KRW. Researcher Hong explained, "Based on mid- to long-term business structure improvements led by content rights, the domestic advertising market having passed its bottom, and a PBR (Price to Book Ratio) of only 0.5 times, we maintain an active 'overweight' opinion."

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