SAMG Entertainment Achieves 10.9 Billion Won Cumulative Operating Profit in Q3... "Stable Performance Maintained Through Cost Efficiency"

SAMG Entertainment announced on November 14 that it recorded cumulative sales of 92.8 billion won and operating profit of 10.9 billion won for the first three quarters. Despite the seasonal off-peak period, the company maintained a stable performance structure, achieving over 10 billion won in operating profit on an annual cumulative basis.

In the third quarter, due to the seasonal off-peak effect, consolidated sales reached 21.7 billion won, with an operating loss of 700 million won. Compared to the same period last year, sales decreased by approximately 13.1%, mainly due to the base effect from last year's movie "Hachuping of Love." However, both the cost of goods sold and selling and administrative expenses decreased, continuing the trend of cost structure improvement. Operating loss shrank by about 86.7% compared to the same period last year.

While product sales declined in the third quarter due to seasonality, license sales remained at a similar level to the previous quarter, contributing to the stabilization of the revenue portfolio. The proportion of license sales expanded by more than 9 percentage points compared to the previous quarter, demonstrating that the business foundation remains well-balanced even amid seasonal factors.

SAMG Entertainment's expansion into the adult target market began in earnest in August last year with the box office success of the movie "Hachuping of Love." At that time, the film attracted 1.24 million viewers, spreading character awareness among adults through memes, communities, and new media platforms. Building on this, in the first half of this year, the company completed commercial validation through collaborations with major brands, including signing an MOU with SM Entertainment, launching a collaboration pop-up with Hyundai Motor Company, issuing more than 100,000 KB Kookmin Card "Teen-Up Check Cards," selling out Clio sun cushions, and selling out collaboration goods with the Kia Tigers.

In particular, the recent exposure of Hachuping-related content on BLACKPINK Lisa's official social media has further boosted its global buzz. The spread of memes among adults, coupled with increased overseas fandom engagement, has simultaneously strengthened awareness of the adult target market both domestically and internationally.

Starting in the second half of 2025, based on this validation, SAMG Entertainment will launch its own adult-targeted product lines, including the Hachuping Idol Project Blind Box, Animal Hachuping Series, and Hachuro-Won Life. The business is expanding from a collaboration-centric structure to one that can enhance both brand value and profitability. In addition, SAMG Entertainment announced plans to launch a brand store within the year, targeting both Millennials & Gen Z and global demand.

A SAMG Entertainment representative stated, "The expansion into the adult target market is not a temporary reaction, but a sign that demand based on the adult demographic is structurally taking root." The representative added, "Having expanded step by step from the box office success of the movie, through brand collaborations, and now to our own adult-targeted product lines, it is significant that our IP branding strategy is now in full operation, moving beyond simple merchandise sales." They continued, "If the brand store and new lineups are added in the future, the IP brand value based on the adult consumer base will be further strengthened."

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