"50% Increase in Sales"... SAMG Entertainment Accelerates External Growth in Q3 as Well

SAMG Entertainment (CEO Kim Suhoon, hereinafter SAMG Entertainment) continued its rapid external growth in the third quarter.

SAMG Entertainment announced on the 13th that its consolidated sales for the third quarter reached 16.1348 billion KRW, a 50.3% increase compared to the same period last year. The cumulative sales for the third quarter amounted to 60.642 billion KRW, up 42.2% year-on-year.

Following the first and second quarters, the company maintained double-digit external growth in the third quarter as well. SAMG Entertainment’s compound annual growth rate (CAGR) over the past three years reached 70.6%. This is the result of accelerating its leap beyond a simple kids content company to a comprehensive family platform enterprise.

This year’s third quarter external growth was driven by sales related to core intellectual properties (IPs), centered on the key IP “Catch! Tiniping” and the new IP “Metal Card Bot.” As the global fandom for these core IPs expanded, overseas sales for the cumulative third quarter reached 13.647 billion KRW, surpassing last year’s total annual overseas sales of 10.1 billion KRW.

The operating loss for the third quarter was 4.235 billion KRW. SAMG Entertainment explained that the deficit was influenced by ▲ increased labor costs due to new business initiatives and ▲ selling and administrative expenses reflecting improvements in the toy distribution structure.

SAMG Entertainment expressed confidence in its performance for the fourth quarter, which is the peak season for kids content companies. This confidence is based on the success of “Saecomdalkom Catch! Tiniping,” launched last September. “Saecomdalkom Catch! Tiniping” surpassed a peak viewership rating of 20%, setting the highest rating in the series’ history and is expected to show a greater growth rate than previous seasons.

In particular, the fact that SAMG Entertainment’s core new business, the offline theme space project, will be fully launched during this year’s Christmas season is also a positive factor. SAMG Entertainment plans to open “Tiniping World Pangyo,” an approximately 700-pyeong (about 2,310 square meters) offline theme space in Pangyo, Gyeonggi Province, in December, marking the full-scale start of its offline theme space business.

A representative from SAMG Entertainment said, “Despite the third quarter being the off-season for kids content companies, we continued a steep sales growth compared to the same period last year. We expect profitability to improve as the cost burden for new businesses will be offset once the offline theme space business is fully launched in the fourth quarter.”