[Click eStock] Skylife Soars with 'Woo Young-woo Effect'... "Governance Risk Resolution Expected"

[Asia Economy Reporter Ji Yeon-jin] KB Securities expressed optimism on the 4th that the corporate value of Skylife, which recently surged due to the drama "Extraordinary Attorney Woo," will overcome the highlighted risks of corporate governance restructuring in the future.

Since June 29, the drama "Extraordinary Attorney Woo," aired on Skylife TV's ENA channel, has been a hit, raising expectations for increased advertising sales prices of its subsidiaries. As a result, the stock price rose 16.5% compared to the closing price on June 29, reaching 9,590 KRW (closing price) on the 15th of last month.

However, concerns emerged that with the merger of Media Genie (formerly Hyundai Media), a subsidiary of Sky TV and Studio Genie, Sky TV?which owns the popular ENA channel?might be reorganized as a subsidiary of Studio Genie, causing the stock price to fall 6.3% to 8,980 KRW. KB Securities researcher Kim Jun-seop stated, "If the scenario where Sky TV leads the acquisition of Media Genie materializes, concerns about the corporate governance restructuring of Sky TV are expected to be resolved. However, depending on the acquisition method, the scale of cash outflow for the acquisition and the success of the next work following 'Extraordinary Attorney Woo' are expected to be factors causing stock price volatility."

Meanwhile, Skylife's operating profit in the second quarter was 23.3 billion KRW, a 0.4% increase, meeting market expectations. During this period, the number of broadcasting subscribers was 5.06 million (Sky TV 2.63 million, HCN 1.28 million, OTS 1.15 million), a 0.4% decrease compared to 5.08 million in the first quarter. The number of Mobile Virtual Network Operator (MVNO) subscribers increased by 40% quarter-on-quarter to 210,000.