[Click eStock] "Ace Story, Stable High Growth Expected in the Second Half"

Hana Financial Investment Report

[Asia Economy Reporter Minji Lee] Hana Financial Investment forecasted on the 26th that Ace Story, having achieved record-high profits in the first half of the year, will continue its stable high-growth trend in the second half as well.

Ace Story's Q2 revenue and operating profit were 25.3 billion KRW and 4.5 billion KRW respectively, marking increases of 8,077% and a turnaround to profitability compared to the same period last year. The operating profit exceeded market expectations of 3 billion KRW. This was influenced by the drama "Jirisan" progressing beyond the initially expected 40% to 47%, and taxes increased by about 700 million KRW compared to last year. The gross profit margin (GPM) was 25%, meeting market expectations, and the operating profit margin (OPM), excluding taxes, was a positive result exceeding 20%.

In Q3, the final progress rate (9%) and the Coupang original variety show "SNL Korea" will be reflected ahead of the estimated October airing of "Jirisan." In Q4, the secondary rights of "Jirisan" will be reflected, and filming for "Big Mouth" and "Extraordinary Attorney Woo" is scheduled.

For "Jirisan," the combined operating profit for the past three quarters, reflecting a 91% progress rate, was 5.8 billion KRW. Considering the remaining progress and nearly cost-free secondary rights, it is expected that operating profits of around 10 to 15 billion KRW per episode can be achieved. Kihoon Lee, a researcher at Hana Financial Investment, explained, "With the actual airing just two months away, there is additional upside potential due to the IP business linked to its success, so expectations should be high," adding, "Excluding 'Jirisan,' the combined production cost is estimated to be around 100 billion KRW, so stable high growth is expected to continue."

Looking at the future lineup, a large-scale tentpole seasonal drama written by Park Jaebum, the writer of "Vincenzo," is also planned. Based on the webtoon "Mudang," the work is set in the future and urban environments, and it is expected to expand into various IP businesses such as K-pop, UAM, games, and metaverse. A seasonal drama based on the webtoon "340 Days of Grace" is also planned for production.