[Featured Stock] Contentsree Joongang Falls Over 2% Intraday Amid Lowered Expectations

[Asia Economy Reporter Minji Lee] Contentsree Joongang is falling more than 2% during trading hours.

At 9:43 a.m. on the 4th, Contentsree Joongang was traded at 21,400 KRW, down 2.95% from the previous trading day. On that day, the stock price fell to as low as 21,150 KRW during trading hours. It is analyzed that investor sentiment has weakened due to the sluggish pace of earnings improvement following poor third-quarter results.

Contentsree Joongang recorded an operating loss of 14 billion KRW in the third quarter, continuing its deficit. The film division performed well, but the broadcasting division was disappointing. The film division recorded sales of 76.7 billion KRW, a 151% increase compared to the previous year, and an operating profit of 8 billion KRW. However, the broadcasting division recorded an operating loss of 21.2 billion KRW due to a decrease in the number of broadcasts and the absence of simultaneously aired content.

Choi Yonghyun, a researcher at KB Securities, said, “Profitability improvement in the film division will continue next year, but the recovery speed of the broadcasting division will be slow.” He analyzed, “The broadcasting division is expected to improve profitability due to an increase of more than three season-based works next year, leading to a rise in recoupment rates and sales of subsidiary Wiip’s works, but since it mainly focuses on original works, expectations should be lowered.”