SAMG Entertainment, Q2 Sales Grow 49%... Accelerating 'Third Leap' with CB Issuance

SAMG Entertainment (CEO Kim Suhoon, hereinafter SAMG Entertainment) continued its rapid external growth in the second quarter. At the same time, it is accelerating growth through the issuance of convertible bonds (CB).

SAMG Entertainment announced that its consolidated revenue for the second quarter of this year was 23.4 billion KRW, an increase of 48.8% compared to the same period last year. The cumulative revenue for the first half of the year was 44.5 billion KRW, up 39.4% over the same period. Following over 30% revenue growth in the first quarter, the company showed a steep growth trend in the second quarter as well.

Sales related to core intellectual properties (IP) such as "Catch! Tiniping," "Mini Special Forces," and "Super Dino" increased. In addition, the new IP "Metal Card Bot," launched in March, also began to contribute significantly to performance growth. In particular, "Metal Card Bot" rapidly grew to become one of the top 3 domestic boys' IPs in a short period after its launch, establishing itself as a new core IP for SAMG Entertainment.

Overseas business sales also recorded rapid growth in the second quarter. SAMG Entertainment's overseas business revenue for the second quarter was 6.6 billion KRW, a 117% increase compared to the previous quarter. As SAMG Entertainment's core IPs such as "Catch! Tiniping" and "Mini Special Forces" expand their global kids fandom, overseas sales growth is accelerating.

Operating loss based on consolidated financial statements was 2.2 billion KRW in the second quarter. SAMG Entertainment explained that the loss was due to ▲ proactive reflection of selling and administrative expenses from direct toy deliveries ▲ increased labor costs from new business initiatives ▲ and IP development costs.

Furthermore, SAMG Entertainment announced that it will issue convertible bonds worth 30 billion KRW. Through this, it plans to accelerate its third phase of growth.

The CB has a nominal interest rate of 0%, a maturity interest rate of 2.5%, and a maturity date five years from the issuance date. This CB will be issued mainly to institutional investors who have already invested in SAMG Entertainment. It is a structure that receives reinvestment from investors who share SAMG Entertainment’s long-term vision.

Also, unlike the usual CB stock conversion timing of one year from the issuance date, SAMG Entertainment’s CB can be converted into stock two years after the issuance date. SAMG Entertainment explained that this stringent condition was set to minimize concerns about stock dilution while attracting only investors who agree with SAMG Entertainment’s long-term vision.

A SAMG Entertainment official said, “The funds raised through the CB issuance will be invested in new IP projects, global market expansion, and offline space businesses,” adding, “Through this investment attraction, SAMG Entertainment will officially begin its third leap forward.”

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