[Click eStock] "SBS, Factors Behind Poor Performance Being Clarified... Target Price↓"

DB Financial Investment judged on the 22nd that the main factors driving SBS's poor performance are being resolved. The investment opinion 'Buy' was maintained, but the target price was lowered from the previous 31,000 KRW to 23,000 KRW.

SBS Headquarters Building. Photo by Jo Yongjun jun21@

On a consolidated basis, SBS recorded sales of 275 billion KRW and an operating profit of 9.6 billion KRW in the second quarter of this year. Sales increased by 1.4% compared to the same period last year, but operating profit decreased by 62.5%. Shin Eun-jung, a researcher at DB Financial Investment, analyzed, "Domestic TV advertising volume continues to shrink, and the drama '7-in-ui Buhwal' (7 Resurrection) underperformed with a peak viewership rating of 4.4%, causing major business divisions to record negative growth." She added, "Revenue related to the Paris Olympics is expected to be reflected in the third quarter," and forecasted, "Considering that the third quarter is an advertising off-season and the deficit from the Olympics, the separate basis operating performance in the third quarter will record an operating loss of 11.6 billion KRW."

However, researcher Shin said, "The main factors that led to the poor performance in the first half are being somewhat resolved, and with the conclusion of the Paris Olympics, the burden of Olympic broadcasting rights fees has also disappeared." She added, "In the second half, with anticipated broadcasts of highly expected works such as Jihokeseo On Panja (Judge from Hell), advertising and business revenue top-line and profits are expected to improve." She further stated, "I believe that many concerns have already been largely reflected in the stock price. It is necessary to observe the situation over the long term."

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