SAMG Entertainment Achieves 3.9 Billion Won Operating Profit in Q1, "Profit Structure Stabilized"

Stable Performance Maintained Even During the Off-Season

Global IP content company SAMG Entertainment (hereinafter referred to as "SAMG Entertainment") announced on the 15th that it posted consolidated sales of approximately 37.6 billion won and an operating profit of around 3.9 billion won (operating margin 10.31%) in the first quarter.

This performance represents the first quarterly results since turning a profit for the full year last year. Despite the industry’s traditional off-season, the company maintained a double-digit operating margin and a stable profit structure. Notably, the strategy to expand business channels—such as diversifying into online, direct, and global IP channels—has started to bear fruit, even amidst external changes including the reorganization of distribution channels at major hypermarkets.

SAMG Entertainment’s debt ratio stands at approximately 40.1%, a significant decrease compared to 216% at the end of 2024, substantially improving its financial soundness. Its gross profit margin was recorded at 37.4%, down from last year’s 42.5%. The company explained that this adjustment resulted from proactive spending aimed at expanding global IP and diversifying business categories. SAMG Entertainment plans to accelerate the expansion of both online and offline sales channels as well as diversification of its IP business, leveraging its stable cost structure and strengthened financial capacity.

On a consolidated basis, overseas sales in the first quarter amounted to about 16.4 billion won, making up approximately 44% of total sales—a rapid increase in the company’s global business portion. In China, the release of the theatrical version of “Lovely Hachuping” Season 2 is being prepared, alongside the launch of an official online store based on global media commerce. In Japan, “Catch! Teenieping” Season 4 has been launched on Tokyo TV, continuing its predecessor’s record-setting viewership for Japanese animation. In Taiwan, the Line Friends collaboration pop-up has expanded to five stores.

The flagship IP brand “THE TEENIEPING” is visualizing the results of its up-targeting strategy by expanding its fandom among the 2030 generation. In the first quarter, about 65% of new online mall subscribers and approximately 64% of sales came from customers in their 20s and 30s. The offline flagship store “THE TEENIEPING Seongsu” (opened in December 2025) also saw 20.6% of its initial visitors in their 20s, indicating growing adult fandom. Building on this, in April this year, “THE TEENIEPING Mini” stores opened in Jamsil and Cheongnyangni, further expanding offline channels, with more stores in preparation.

Another major IP, “Metal Cardbot,” is also experiencing growth by attracting not only its core kids’ audience but also adult collectors. “Metal Cardbot W” (Season 3), which began airing in December 2025, surpassed a 16% target viewership rating and ranked first in both viewership among boys’ programs in Korea and major hypermarket sales rankings.

According to the company, among purchasers of “Metal Cardbot” related products, 68.3% from the company’s own mall and 82.6% from Naver Smart Store were from consumers in their 30s and 40s, indicating a rapid increase in adult collector demand. SAMG Entertainment plans to further grow the “Metal Cardbot” IP’s recognition in global markets such as China and Russia, aiming to establish it as a K-mechanics IP brand.

Last year, SAMG Entertainment established a high-value-added licensing business model through partnerships with leading brands in industries such as automotive, finance, sports, beauty, and retail. This year, it is expanding its K-collaboration initiatives to include global artists, movies, and games. Experiential K-collab projects are also continuing, such as Hyundai Motor pop-ups in Goyang and Busan (May to August), KIA Tigers collaboration goods with two consecutive years of success, collaboration with five K League 1 and 2 clubs, and the FILA Kids Teenieping Run (sold out with 3,000 children and adults). SAMG Entertainment announced that it will continue to unveil K-collab projects based on its up-targeting and global strategies.

In the second half of 2026, various content events are scheduled to drive further business growth. In the third quarter, the second installment of the “Lovely Hachuping” theatrical trilogy, titled “Lovely Hachuping: The Legend of the Whale Jewel,” will be released. In the fourth quarter, both “Catch! Teenieping” Season 7 and “Mini Force” Season 8 will premiere. Additionally, two new IPs targeting global family audiences are in preparation for launch after 2026–2027.

Soohoon Kim, CEO of SAMG Entertainment, stated, “We are maintaining stable profitability even during the off-season, while pursuing both business diversification and global expansion. We will continue to strengthen our IP competitiveness in the global market by leveraging various growth drivers, including the expansion of the Teenieping universe, branding Metal Cardbot as a K-mechanics IP, and launching new IPs.”

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