[Click eStock] "DearU, No More Shaking"

Kiwoom Securities analyzed on the 10th that all the negative factors for DearU in the first half of the year have already occurred, and there will be no further fluctuations.

Namsoo Lee, a researcher at Kiwoom Securities, stated in a report on the same day, “DearU is expected to record sales and operating profit of 18.6 billion KRW and 7.3 billion KRW in the second quarter of this year, up 59.4% and 112.5% respectively compared to the same period last year, meeting consensus,” adding, “The increase in subscriptions toward Universe in the first quarter and the reflection of fandoms of key artists such as Stray Kids are considered effective.”

The number of subscriptions, which increased from 1.7 million at the end of last year to 2.3 million at the end of the first half, is believed to have been contributed evenly by existing artists and new Universe-related fans. The entry of new fandoms toward Universe is expected to continue with world tours by (G)I-DLE, The Boyz, and others.

Researcher Namsoo Lee explained, “After the management rights dispute between HYBE and Kakao over SM Entertainment, the official confirmation of SM artists joining Weverse was made,” and “Additionally, concerns about JYP Ent.’s own platform construction and issues such as EXO’s exclusive contract dispute have all been raised in the market as risks related to agencies and artists.”

He analyzed, “It is reasonable for SM artists’ Bubble service to be maintained due to reasons such as sustaining the relationship between fans and artists,” and “The JYP Ent. platform issue was resolved by creating exclusive spaces within the Bubble service for the global fan club of TWICE following Stray Kids last year, and EXO continues activities with a comeback through a full-length album today, so the artist IP remains intact. There is no reason to terminate the Bubble service.”

Furthermore, he forecasted, “The average number of subscriptions in the third and fourth quarters is expected to increase by 13% and 16% from the previous quarter to 2.55 million and 2.95 million respectively,” and predicted, “Subscriptions will make a leap forward through world tours.”

He also said, “In the third quarter, the addition of handwritten fonts is expected to improve payment amounts, and the full-scale synergy with Kakao will be a key point to watch in the second half,” adding, “Improvements in category services for artists affiliated with Melon and Kakao, as well as the expansion of artists joining the platform, are encouraging. Global expansion is also underway, preparing for China and the United States following Japan, so the momentum is sufficient.”

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