Dreamus Company Reports 900 Million KRW Operating Loss in 3Q... Cumulative Turnaround to Profit

Dreamus Company, an affiliate operating the music platform FLO, announced on the 14th that it recorded consolidated sales of 71.2 billion KRW and an operating loss of 900 million KRW in the third quarter. Compared to the same period last year, sales decreased by 3.8%, and the operating loss increased by 17.6%.

On a cumulative basis, sales reached 208.3 billion KRW, and operating profit was 800 million KRW. This represents a 4.1% growth in cumulative sales compared to the same period last year, and operating profit increased by 2.6 billion KRW, turning positive.

Dreamus Company, an affiliate of SK Square, operates its main business, the music platform FLO, along with music and physical album distribution, and performance and MD-related businesses. In particular, the MD business has continued to grow in sales following the expansion of the upstream K-pop market, driving overall sales this year. Dreamus Company is expanding its MD business into overseas markets through its Japanese subsidiary, broadening its reach in the global market. Additionally, it is continuously strengthening its capabilities in content IP business, including artist intellectual property (IP) and music IP acquisition through content production and equity investments.

Meanwhile, Dreamus Company recently developed its own AI language model-based music recommendation technology. Based on this technology, it plans to enhance FLO’s AI recommendation curation function and improve the quality of users’ music listening experiences in various situations. Dreamus Company expects to start applying this technology to some FLO services within this year and expand its use in 2024, not only advancing the FLO app’s features but also applying it across various business areas.

In addition to developing its own AI technology, Dreamus Company plans to apply AI technology in collaboration with startups possessing AI capabilities to enable creators to produce and distribute content more conveniently and with higher quality. Furthermore, it aims to leverage AI technology to support the diversification of Dreamus Company’s business.

Kim Dong-hoon, CEO of Dreamus Company, said, “We will build a music ecosystem that enhances the utilization of AI to strengthen the competitiveness of our platform business, while continuously enhancing our capabilities in the content IP business to achieve visible results in expanding our entertainment business portfolio.”

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