After Listing, Six More... Why Dexter Keeps Expanding Its Affiliates

Revenue Stability Weak with Visual Effects Alone
Establishing and Acquiring Affiliates Handling Content Planning, Filming, Production, and Post-Production
Steadily Increasing Sales, Approaching Goal of Comprehensive Content Production Company

Dexter Studio (hereinafter Dexter), a visual effects (VFX) specialist company, has increased its number of affiliates by six since its listing on the KOSDAQ. This is interpreted as a response to the growth limitations felt from relying solely on VFX production, its main revenue source. Currently, the company is expanding its business areas to include films, dramas, and management, aspiring to become a comprehensive content production company.

According to the financial investment industry, Dexter holds six companies?Livetone, Dexter Pictures, Dexter Crema, Nest ENT, Takeaway, and Flashback Ground Gyeongju?as consolidated subsidiaries through equity investments and other methods. All of these were incorporated as affiliates after Dexter's KOSDAQ listing.

The reason Dexter has increased its affiliates is to ensure continuity in performance. On a consolidated basis, Dexter's sales fluctuated with 39.2 billion KRW in 2018, 55.5 billion KRW in 2019, 26.3 billion KRW in 2020, 43.0 billion KRW in 2021, and 65.9 billion KRW last year. This reflects the limitations of its core business. Dexter's revenue mainly comes from VFX production, other service income, and film project investment income, with VFX production accounting for a large portion.

Dexter's technology has already been validated by the success of various films and dramas. Dexter is a VFX specialist company established in 2011 by director Kim Yong-hwa, who made films such as "Take Off" and "200 Pounds Beauty," along with Korea's first-generation VFX supervisors. It was the first film-related company to pass a technology evaluation. VFX is a technique that creates scenes that do not exist or cannot be filmed in video works. It also possesses digital color grading and digital imaging technician (DI&DIT) technologies.

Dexter handled the visual work for the recent hit "Moving," as well as "Mask Girl" and the variety show "Zombie Bus." However, regardless of a project's success, Dexter's revenue is solely the amount from service contracts. No additional income such as rights sales or intellectual property (IP) expansion occurs. A Dexter official said, "Although additional income does not occur separately, if a project succeeds, it creates an expected effect leading to orders from other domestic and international companies or projects."

To maintain steady sales, Dexter has continuously increased its affiliates. Livetone, acquired by Dexter in 2017, is a company responsible for sound in films such as "The Admiral: Roaring Currents," "Okja," "The Host," "The Attorney," "Train to Busan," and "The Age of Shadows." In 2018, Dexter established Dexter Pictures, a film and video production company. This company produced films including "Ashfall," "Along with the Gods," and "Escape from Mogadishu." In 2021, Dexter acquired Dexter Crema (formerly Crema Worldwide), which had been engaged in advertising planning and integrated communication agency services. In the same year, Dexter, Diovis Studio, and Crema jointly established Nest ENT, a virtual creator management company.

Through these processes, Dexter is emerging as a comprehensive content company. Dexter (visual effects), Livetone (music), Dexter Pictures (content production), and Nest ENT (virtual creator management) can now perform almost all tasks necessary for content production. They can handle everything from content planning to filming, production, and post-production.

In particular, Dexter Pictures plays an important role in Dexter's content production. It is preparing to produce content such as films by securing content intellectual property (IP). Dexter Pictures signed a memorandum of understanding (MOU) with The Grim Entertainment for content planning, production, and business development. Their first work is "Chetamja," a drama based on a special unit in the Joseon Dynasty, a historical espionage action genre. "Chetamja" has been serialized as a webtoon since last month. The drama adaptations of the classic comic "Meoteoldosa" and the webtoon "The Emperor's Only Daughter" are also underway. A company official said, "We plan to produce content in various genres such as fantasy, sci-fi, and action," adding, "Synergy effects are expected as VFX and virtual production (VP) technology work is anticipated."

Dexter plans to continue generating synergy effects based on collaboration with its affiliates. A company official said, "We will maximize business synergy effects across films, dramas, OTT series, and advertising marketing projects," and added, "We also plan to continue research and development (R&D) for content production incorporating artificial intelligence (AI)."