Fantagio "Resolution of Designation Reasons for Management Item"

[Asia Economy Reporter Jang Hyowon] Fantagio, which was designated as a management item in March, announced on the 2nd that it has resolved the reasons for the designation as of the fiscal year-end in late June.

Fantagio announced on the 2nd that as a result of the settlement of the 32nd business year, it has escaped from capital erosion that exceeded 50% as of the end of last year, and the loss from continuing operations before corporate tax was significantly below 50% of its equity of 32.1 billion KRW, thereby resolving the reasons for the management item designation. Accordingly, it is expected to be released from the management item designation along with the submission of the audit report.

Earlier, the company disclosed yesterday that the results for the 32nd business year recorded sales of 15.3 billion KRW and operating profit of 1.3 billion KRW. These figures represent decreases of 34.9% and 29.7%, respectively, compared to the previous business year. The profit from continuing operations before corporate tax and net loss for the period were 6.3 billion KRW and 6.3 billion KRW, respectively, recovering by 71.0% and 69.0% compared to the previous business year, reducing the loss margin.

A company official said, “The performance for this business year was compiled after changing the fiscal year-end from December 31 to June 30, covering the six months from January 1 to June 30 this year,” and added, “It showed a clear recovery compared to the previous business year, which was a one-year accounting period.”

Fantagio was designated as a management item on March 21 due to reasons including ▲capital erosion rate exceeding 50% as of the end of last year and ▲loss from continuing operations before corporate tax exceeding 50% of equity for two out of the last three years.

The company changed its fiscal year-end from December 31 to June 30 through an amendment to its articles of incorporation at the regular shareholders' meeting in March to enhance shareholder value and to exit the management item designation early.

Meanwhile, Fantagio made a full-scale entry into drama production starting with the tvN drama 'Blind' starring Ok Taek-yeon, Ha Seok-jin, and Jung Eun-ji in the first half of this year. By producing three dramas during the first half, it is advancing as a comprehensive content company.

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