[Featured Stock] Contentsree Joongang Rises 3% on Earnings Improvement Outlook

[Asia Economy Reporter Minji Lee] Contentree Joongang (formerly J Contentree) continues its upward trend despite recording sluggish performance in the first quarter. It is expected that quarterly performance will improve from the first quarter low point.

As of 9:24 a.m. on the 9th, Contentree Joongang was trading at 48,450 KRW, up 3.30% from the previous trading day. The stock price surged to as high as 49,850 KRW in early trading that day.

On a consolidated basis, Contentree Joongang's first-quarter sales this year were tentatively estimated at 135.6 billion KRW, a 13% increase compared to the same period last year, while operating loss continued at 31.8 billion KRW.

In the securities industry, significant improvement in the film sector is expected. Contentree Joongang operates the multiplex cinema chain 'Megabox.' The film division, which had recorded losses of around 15 billion KRW each quarter, is predicted to improve rapidly as in-theater dining was permitted starting from the 25th of last month, and major releases such as 'Doctor Strange 2' and 'Crime City 2' this month, followed by 'Top Gun 2' next month, are scheduled.

Lee Ki-hoon, a researcher at Hana Financial Investment, explained, "Although the first quarter was significantly weaker than expected, from the second quarter onward, momentum from various online video service (OTT) programming and the film lineup is expected to lead to quarterly performance improvements starting from the first quarter low point."