[Click e-Stock] "Studio Dragon Begins Turnaround Backed by The Tyrant's Chef"

On October 2, DB Financial Investment analyzed that Studio Dragon has entered a full-fledged earnings turnaround phase in the second half of the year.

Shin Eunjeong, a researcher at DB Financial Investment, stated, "Third-quarter revenue is expected to reach 182.7 billion won, up 102.3% year-on-year, and operating profit is forecast to turn positive at 18.5 billion won." She added, "This exceeds the market consensus for operating profit, which stands at 16.6 billion won." She further explained, "A total of 83 episodes-including 'Gyunwoo and Jiknyeo,' 'For My First Love,' 'The Tyrant’s Chef,' 'My Husband’s Contract/First Love Dogs' (Japan), and 'All Shall Be Fulfilled' (Netflix)-will be reflected in the results, which is more than double the number in the second quarter."

In addition, the amortization expenses related to 'To the Stars,' which had been a burden in the first half, have now been fully resolved, significantly reducing cost pressures-a positive factor moving forward. Shin estimated, "Overseas rights sales for 'Gyunwoo and Jiknyeo' and 'The Tyrant’s Chef' have also been strong," and added, "In particular, 'The Tyrant’s Chef' is expected to receive incentives from tvN thanks to its high viewership ratings."

The improvement in results is expected to continue into the fourth quarter. Shin forecast, "In the fourth quarter, approximately 56 episodes-including 'The New President Project,' 'Typhoon Trading Company,' 'Annoying Love,' and 'Pro Bono'-will be reflected in the results." She added, "Typhoon Trading Company and Annoying Love (starring Lee Jungjae and Lim Jiyeon), which have high production costs, are expected to maintain solid profit margins as overseas rights sales are also completed." She further predicted, "Additional revenue from the sale of older titles is likely to be recognized, and reflecting this, fourth-quarter revenue is projected at 185.6 billion won and operating profit at 20.1 billion won, representing year-on-year increases of 42.1% and 272.7%, respectively."

However, she noted that the scheduling of Wednesday-Thursday dramas, which had attracted significant market attention, is likely to be delayed and rescheduled for 2026. Shin emphasized, "The number of dramas produced annually is recovering from 18 titles in 2024 to 21 in 2025, and an additional three to four titles are possible in 2026." She added, "While news of sales to China would be even more positive, this remains uncertain for now. Nevertheless, Studio Dragon is fully capable of growth even without the Chinese market."

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