[Click eStock] "SBS, Strong Profitability Again This Year"

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] IBK Investment & Securities on the 22nd issued a 'Buy' investment opinion and a target price of 65,000 KRW for SBS.

It is expected to achieve high profits again this year following last year, as the policy direction toward easing media regulations becomes more visible.

Last year, SBS recorded sales of 1.079 trillion KRW and an operating profit of 184 billion KRW. This year, sales of 1.0154 trillion KRW and operating profit of 206 billion KRW are expected. The basis for this outlook is that while production costs are controlled around 600 billion KRW, efficient investment execution using a flexible scheduling system, combined with a rebound in the advertising market, is expected to lead to improved profit margins. Additionally, as content investment and global expansion by Wave, the nation's No.1 OTT platform, accelerate, an increase in content royalty revenue is also anticipated.

Lee Hwan-wook, a researcher at IBK Investment & Securities, analyzed, "SBS's revenue model is divided into advertising and business income, with advertising revenue being the basic cash cow linked to TV and radio ratings, accounting for 48% as of the end of last year," adding, "This year, with the inauguration of the new government, a favorable business environment is expected throughout the year, including strengthening fairness in public broadcasting and horizontal regulation of media."