[Click eStock] “Studio Dragon, Qualitative Improvement Ahead of Quantitative Growth”

Meritz Securities analyzed on the 9th that Studio Dragon has achieved qualitative improvement ahead of quantitative growth.

Studio Dragon recorded consolidated sales of 137.1 billion KRW and operating profit of 10.5 billion KRW in the second quarter of this year, down 16.1% and 35.7% respectively compared to the same period last year. Operating profit slightly missed the market consensus of 12.6 billion KRW.

Jisoo Jung, a researcher at Meritz Securities, said, "The lineup in the second quarter consisted of a total of 42 episodes (34 TV episodes, 8 OTT episodes) including , , , and , which is 41 episodes fewer than the previous year. However, the production costs of the aired works were large and the viewing performance was excellent, so the decline in sales was not significant despite the decrease in the number of episodes aired. Additionally, increased overseas sales revenue of older works and strengthened production processes helped overcome amortization burdens and defend profitability," she analyzed.

Researcher Jung forecasted, "This year's consolidated sales will be 622.3 billion KRW and operating profit will be 57.8 billion KRW, a 17.4% decrease and a 3.5% increase respectively compared to the previous year. Although the number of episodes aired in the second half of this year will also decrease compared to the same period last year due to media market restructuring such as reduced TV channel programming, as confirmed in the first half results, the company will focus on improving profitability by activating distribution structures such as pre-sales through IP acquisition and regional sales."

He added, "Due to changes in the global media industry landscape, content strategies of domestic production studios are inevitably changing. In 2025, along with the recovery in the number of productions, the company aims to achieve external growth and profitability improvement through participation in global projects in collaboration with major U.S. platforms," he predicted.