[Click eStock] "WYSIWYG Studio to Reflect Production Revenue from H2"

Shinhan Financial Investment Report

[Asia Economy Reporter Minji Lee] Shinhan Financial Investment maintained a buy rating and a target price of 37,000 KRW for Wysiwyg Studio on the 19th.

In the second quarter, the company's sales recorded 46.3 billion KRW, marking a 130% growth compared to the same period last year. Operating loss was 4.9 billion KRW. Operating expenses grew 156% during the same period, reaching 51.2 billion KRW. Despite increased sales in major businesses following the first quarter, poor performance of subsidiaries and increased labor costs led to disappointing results.

By business segment, sales showed growth with Content at 26.8 billion KRW (205%), VFX and New Media at 8.1 billion KRW (28%), and Exhibition Agency at 11.4 billion KRW (159%).

The mid- to long-term growth drivers appear sufficient. This is due to the expected turnaround in performance from successful vertical integration of production and the development of new platforms such as metaverse and advertising. Kangho Oh, a researcher at Shinhan Financial Investment, stated, “Since last year, through investments in film and drama production companies, we have succeeded in vertical integration by producing our own content and simultaneously handling video work.”

The fruits of these investments are expected to be reflected sequentially from the second half of this year. Major works include ‘Black’s Bride’ and ‘The Youngest Son of a Chaebol Family’. This year, sales in Content and VFX are projected to grow 56% and 39% year-on-year to 110.2 billion KRW and 33.3 billion KRW, respectively.

Post-COVID-19 social paradigm shifts connecting content, advertising, and consumption are also noteworthy. This is because it can lead to an expansion of Hallyu content value, increased consumer needs, and enhanced advertising effectiveness. Researcher Oh analyzed, “It is worth expecting a synergy effect of expanded commerce sales through content hits,” adding, “The competitiveness of the core technology, VFX, can only increase.”

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