Dreamus Company, operator of FLO, records sales of 270.3 billion KRW, down 1.4% YoY

SK Square affiliate Dreamus Company
Operating loss of 3.5 billion KRW... Up 59.6% YoY
"Business efficiency... Deficit reduction achieved"

Dreamus Company, an affiliate of SK Square, announced on the 7th that it recorded sales of 270.3 billion KRW and an operating loss of 3.5 billion KRW last year based on consolidated financial statements.

Dreamus Company operates the music platform FLO, as well as businesses related to music and album distribution, performances, and MD (merchandising).

Last year’s sales decreased by 1.4% compared to the previous year, while operating profit increased by 59.6% during the same period. Dreamus Company stated, "Through business efficiency improvements, we reduced cost scale, improving the deficit to a break-even level."

The net loss for the period was 2.194 billion KRW, turning to a deficit compared to the previous year. However, considering the evaluation gain effect at the end of last year from the convertible preferred shares (CPS), which were classified as equity at the end of last year and recently converted to common stock, the deficit actually decreased.

FLO’s subscription sales slightly declined compared to the previous year due to intensified competition among platforms, but it is creating new business opportunities through B2B partnerships with various services and companies such as artificial intelligence (AI) services, automobile manufacturers, and financial institutions.

Dreamus Company plans to expand FLO’s in-vehicle infotainment (IVI) partnership business to enhance business growth potential. Since 2021, FLO has been installed in Volvo’s in-vehicle infotainment systems and is scheduled to be applied to the new Mercedes-Benz E-Class launching this year.

Additionally, Dreamus Company has independently developed AI language model-based music recommendation technology that strengthens music curation functions and creates playlists suited to moods. This technology will be applied to FLO within this year and is planned to be introduced to various entertainment business areas in the future.

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