[Click eStock] "Contentsree Joongang, 'Crime City 2' Effect... Simultaneous Success in Broadcasting and Theaters"

The movie 'The Outlaws 2' has surpassed 10 million cumulative viewers. It is the first time in three years since Bong Joon-ho's 'Parasite' in 2019, and the first since the COVID-19 pandemic. On the 12th, Seoul CGV Yongsan I'Park Mall was bustling with citizens. Photo by Moon Honam munonam@

[Asia Economy Reporter Kwon Jae-hee] Daishin Securities maintained a 'Buy' rating on Contentsree Joongang on the 14th, setting a target price of 81,000 KRW.

Contentsree Joongang is expected to record solid performance in the second quarter of this year as both its broadcasting and theater divisions show improved results. The second quarter sales are projected at 200 billion KRW, with an operating profit of 1.1 billion KRW, representing a 45% increase in sales compared to the same period last year and a turnaround to profitability in operating profit.

By division, broadcasting sales are expected to reach 1.3 trillion KRW, with operating profit increasing by 16% and 1800% respectively to 12.9 billion KRW. The theater division is expected to record sales of 55 billion KRW and an operating loss of 1.8 billion KRW.

The broadcasting growth is attributed to the increased original programming on online streaming services (OTT) such as , , and (Paper House).

Kim Hoe-jae, a researcher at Daishin Securities, analyzed, "Broadcasting profitability will improve further in the second half of the year," adding, "This year’s most anticipated work, (The Youngest Son of a Conglomerate Family), along with more than five OTT originals are scheduled, and productions for Hulu, Amazon, and HBO are also gaining ground."

The theater division also achieved its monthly break-even point (BEP) as (The Outlaws 2) surpassed 10 million viewers. Contentsree Joongang’s subsidiary BA Entertainment participated in the production, and Megabox Plus M handled distribution. Besides Megabox’s theater sales, Contentsree Joongang’s recognized revenue from production, investment, and distribution is expected to be around 5 to 7 billion KRW.

In particular, the allowance of eating inside theaters from April 25 and the success of combined to increase second quarter audience numbers and sales by 190% and 220% respectively compared to the previous year.

May and June are expected to reach monthly BEP, with quarterly BEP expected from the third quarter. From June to September, releases such as (The Witch: Part 2), , , (Alien Part 1), (Hansan: Rising Dragon), (Emergency Declaration), and (Hunt) are anticipated to help recover pre-pandemic profits.

Researcher Kim said, "With the government’s easing of quarantine policies, theater advertising revenue is expected to recover, and the recovery of audience numbers along with the rise in ratings of tentpole productions will likely be triggers for stock price increases."

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