SAMG Entertainment announced on the 14th that its consolidated financial statements showed sales of 25.3096 billion KRW in the first quarter of this year, marking a 20.37% growth compared to the same period last year. During the same period, operating loss and net loss amounted to 5.90617 billion KRW and 6.54892 billion KRW, respectively.
The local subsidiary established in China last year achieved sales in the first quarter of this year that reached 57.4% of the cumulative sales of the local subsidiary from the previous year, maintaining a steep growth trajectory. The launch of Alssong Dalsong Catch! Tinyping in China in December last year ranked first in OTT and broadcasting station viewership ratings, significantly expanding toy distribution sales.
However, operating profit recorded a loss of 5.90617 billion KRW in the first quarter of this year. Although selling and administrative expenses decreased by 2 billion KRW compared to the fourth quarter of last year due to effective cost management, additional provisions for losses on fashion inventory valuation offset these savings. Furthermore, bad debt write-offs and regular research and development expenses also contributed to the increased deficit.
Despite recording an impressive compound annual growth rate (CAGR) of 55.7% in sales over the past four years, SAMG Entertainment has not met market expectations for expanding operating profit.
Regarding this, a SAMG Entertainment representative stated, “Since listing, we have expanded sales of various MD products and entered new business areas such as space business, gaming, and fashion, but it is true that we have not been able to achieve results in the short term due to the domestic economic downturn. We plan to promptly prepare and disclose to the market effective performance improvement strategies, including reevaluating underperforming new businesses and restructuring subsidiaries currently recording losses.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
