Studio Dragon Expected to Post Strong Earnings Thanks to the Popularity of 'Vincenzo'

[Asia Economy Reporter Jang Hyowon] Studio Dragon is expected to achieve favorable results in the first quarter. This is because 'Cheolinwanghu,' which ended last month, recorded high viewership ratings, and 'Vincenzo,' currently airing, is gaining popularity.

On the 14th, Kim Hoejae, a researcher at Daishin Securities, stated, "‘Cheolinwanghu,’ which aired until last month, achieved a peak viewership rating of 17.4%, ranking 4th all-time after ‘Crash Landing on You’ at 21.7%, ‘Goblin’ at 20.5%, and ‘Mr. Sunshine’ at 18.1%," adding, "High viewership ratings lead to increased sales of broadcasting rights after the show ends, which will significantly contribute to first-quarter earnings."

Daishin Securities forecasts Studio Dragon's sales for the first quarter of this year at 130 billion KRW, a 6% increase compared to the same period last year. The operating profit is expected to be 13.7 billion KRW, an 18% increase year-over-year and a 200% increase quarter-over-quarter.

Researcher Kim said, "The first work of this year, ‘Vincenzo,’ is showing good results with an 11.1% viewership rating at episode 6," and analyzed, "Even with simultaneous airing on Netflix, it is a work with a high recoup (production cost support) rate, so the program margin is expected to exceed 30% from tvN broadcasting rights fees and Netflix simultaneous airing rights alone."

Additionally, Studio Dragon's plan to produce three original dramas for Chinese online video services (OTT) this year is also expected to contribute to earnings growth.

He stated, "Combining the production margin of original dramas for the Chinese market and Korean broadcasting rights, the program margin can exceed 50%," and judged, "Recent works such as ‘True Beauty’ and ‘Vincenzo’ feature many Chinese PPLs, so if the Chinese market opens, these works are highly likely to be sold first."

Overall, the number of drama productions is expected to increase. This year, Studio Dragon will produce a total of 32 works: 23 for ENM, 3 Netflix originals, 3 for terrestrial platforms, and 3 for Chinese OTT.

He forecasted, "While the production volume is increasing, the nine works other than those for ENM are expected to guarantee a basic production margin of around 20% based on our estimates," adding, "Especially for the Chinese market, since Korean broadcasting rights are also held, additional margins can be secured, so this year both volume increase and margin improvement will occur simultaneously."

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