[Click eStock] "NEW, June Box Office Momentum Focused...Improvement in Consolidated Subsidiary Earnings"

Hana Securities explained on the 14th that NEW is a segment worth paying attention to, as the performance improvement of its consolidated subsidiaries is accompanied by short-term box office momentum.

The airing of the tentpole Disney+ original "Moving," starring Dr. Cha Jeong-sook and produced with a budget exceeding 50 billion KRW, is also expected. With the addition of two movies set to be released this month, the box office momentum is anticipated to expand.

From a performance perspective, although the positive influence of the drama business is growing, the pace of performance improvement has been slower than expected. The deficits of consolidated subsidiaries have also been reduced, and Bravo&New was sold last year. The deficit of the VFX subsidiary Engine Visual Wave decreased from 1.8 billion KRW in Q1 last year to 900 million KRW, and the deficit of the cinema subsidiary CineQ also shrank from 900 million KRW to 500 million KRW in the same period.

NEW's sales in Q1 this year were 29.6 billion KRW, down 13% year-on-year, with an operating loss of 900 million KRW. On a separate basis, sales and operating profit were 7.4 billion KRW and 800 million KRW, respectively, mostly driven by distribution revenue from "The First Slam Dunk," with some additional revenue from the ancillary rights of "Owl."

Studio&New recorded sales of 13.4 billion KRW and a net loss of 2.4 billion KRW. The remaining portions of the Disney+ original "Hwainga Scandal," which began filming in Q1, and "Moving," recognized based on progress since last year, were accounted for.

The box office failure of the Studio&New-produced film "Soulmate," released on March 15, is also considered to have had an impact.

Lee Ki-hoon, a researcher at Hana Securities, said, "From June, NEW's box office momentum is concentrated. On the 21st of this month, the film 'Nobleman,' directed by Park Hoon-jung and starring Kim Seon-ho, is set to be released," adding, "Since this work is responsible for both production and distribution, high leverage is expected if it performs well at the box office."

He continued, "On the 26th of next month, the release of 'Smuggling,' directed by Ryu Seung-wan and starring Kim Hye-soo and Jo In-sung, has also been confirmed," and added, "In the second half of the year, 'Hidden Face,' starring Song Seung-heon and Park Ji-hyun, is also anticipated."

He further stated, "For dramas, the Disney+ original 'Moving,' based on a webtoon by Kang Full and starring Jo In-sung and Han Hyo-joo, is expected to be scheduled as a 20-episode series in Q3," adding, "Additionally, the Disney+ original 'Hwainga Scandal,' starring Kim Ha-neul and Bi, is currently in production, and lineups such as 'Say I Love You,' 'Hash's New Road,' and 'Good Boy' are prepared through next year."

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