[Click eStock] "DearU, Strong Q3 Earnings Expected... Structural Level-Up"

On the 18th, Kiwoom Securities analyzed that DearU's operating profit career high will continue in the third quarter of this year.

Namsoo Lee, a researcher at Kiwoom Securities, stated in a report on the same day, "DearU is expected to record sales of 20.2 billion KRW and operating profit of 7.9 billion KRW in the third quarter of this year, representing increases of 65.8% and 87.4% respectively compared to the same period last year, meeting consensus estimates." He added, "The average number of subscriptions in the third quarter is projected to be 2.37 million, which is a 61% improvement compared to the same period last year."

Researcher Lee said, "With the entry of Zero Base One on the 14th of last month, the number of subscriptions likely saw a significant increase at the end of the quarter. In the fourth quarter, the combined effects of Zero Base One and PlayB Bubble launch, Stray Kids' comeback, and the world tour are expected to be reflected, projecting 2.75 million subscriptions." He further predicted, "Subscription numbers are expected to increase by more than 15% compared to the previous quarter in the fourth quarter, and the operating profit career high will continue."

He also analyzed, "Currently, the main debut route for new K-POP IPs is audition programs. With the entry of Zero Base One, DearU has embraced all audition program Planet series including the existing Kep1er, and the expansion potential of audition programs is just beginning."

Additionally, he explained, "The virtual group PlayB and Mister Trot 2 are challenges targeting emerging markets. Virtual groups need to newly build fandom markets, and trot music has had vulnerabilities in industrial development such as expanding fandom size and diversifying revenue. Based on the start of communication with fandoms brought by Bubble, this is an area to create a success story."

He continued, "Starting from the first quarter of next year, Bubble for Japan, launched by the Japanese JV, is scheduled to operate. Targeting 2 million Fanplus subscribers, it is possible to expect up to 3.5 million, and considering artist participation, an average of 1 million subscriptions per quarter is expected in 2024. With a royalty-based revenue structure without costs, it will contribute to profitability improvement," he analyzed.

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