Fantagio Escapes Management Designation After 6 Months... "Achieves Operating Profit for 2 Consecutive Years"

[Asia Economy Reporter Jang Hyowon] Fantagio (Chairman Namgung Gyeon) announced on the 7th that it has submitted an audit report with an “unqualified” opinion based on the fiscal year ending in June this year. The company recorded operating losses on a separate basis in 2020 and 2021, but after changing the fiscal year-end, it posted an operating profit of 1.5 billion KRW on a separate basis and 1.2 billion KRW on a consolidated basis for the half-year period this year. With the submission of this audit report, the company will be removed from the management item list starting from the 8th.

Chairman Namgung Gyeon acquired Fantagio in February last year. After acquiring Fantagio, which had an operating loss on a consolidated basis in 2020, the company recorded an operating profit of 1.8 billion KRW on a consolidated basis last year. Even with only the six-month results after changing the fiscal year in 2022, the consolidated operating profit reached 1.25 billion KRW, achieving two consecutive years of growth since Chairman Namgung’s acquisition.

The company changed its fiscal year-end from December 31 to June 30 through an amendment to its articles of incorporation at the regular shareholders’ meeting in March to enhance shareholder value and exit the management item list early.

Efforts to improve the financial structure also continued. In June, Fantagio secured operating funds by conducting a third-party allotment paid-in capital increase worth 7 billion KRW targeting Mirae I&G and Artist Cosmetic. Additionally, the exercise of conversion rights for the entire 10 billion KRW of the 5th series convertible bonds lowered the debt ratio, contributing not only to enhancing corporate value but also maximizing shareholder value.

A company official explained, “Unlike cases where losses occur after acquisition, our company continues steady progress with consistent operating profits,” adding, “We have laid the groundwork to advance into the drama production sector and leap forward as a comprehensive content company.”

Fantagio’s tvN drama Blind, starring Ok Taekyeon, Ha Seokjin, and Jung Eunji, which was confirmed for production earlier this year, is scheduled to premiere on September 16. Fantagio is growing as a comprehensive content company by producing three dramas in the first half of the year and is preparing to produce numerous works including global content.