‘Thank you, Hachuping~!’ SAMG Entertainment, Q3 cumulative sales of 74.5 billion KRW... "Expecting a return to profit in Q4"

SAMG Entertainment (CEO Kim Suhoon, hereinafter SAMG Entertainment) raised expectations for a return to profitability in the fourth quarter by announcing revenue growth and the results of inventory disposal worth approximately 8 billion KRW in its third-quarter earnings report.

SAMG Entertainment disclosed on the 14th that its cumulative revenue for the third quarter of this year reached about 74.5 billion KRW, an increase of approximately 14 billion KRW compared to the same period last year, while the cumulative operating loss was about 15.1 billion KRW.

In particular, SAMG Entertainment explained that as part of this year's "Big bath," it accelerated inventory disposal, resulting in continued operating losses until the third quarter, but significantly improved its financial structure by reducing inventory assets from 18 billion KRW to around 10 billion KRW.

A SAMG Entertainment official stated, "All employees are feeling the positive ripple effect brought by the successful hit IP from the movie 'Sarang-ui Hatchuping' (Love's Hatchuping)," adding, "Most of the physical inventory such as fashion items has been sold out through both online and offline channels, and now we mainly hold MD inventory assets like toys for sale."

Furthermore, SAMG Entertainment mentioned that the fact that movie-related revenues are reflected separately in the third and fourth quarters will also greatly contribute to the return to profitability in the fourth quarter.

The movie "Sarang-ui Hatchuping," which achieved the second-highest box office record in Korean animation history with a cumulative domestic audience of 1.23 million, has continued screening since its release on August 7, consistently attracting over 20,000 viewers every weekend through October. Accordingly, SAMG Entertainment explained that movie-related IP sales, including licensing contracts with major domestic companies, will also be accounted for in the fourth quarter.

Additionally, "Shooting Star Catch! Tinyping," first revealed through a live broadcast on the company's YouTube channel "TinypingTV" on October 10, started off successfully with nearly 33,000 simultaneous viewers on the first day. Currently, MD production volumes cannot keep up with explosive demand, causing a sell-out frenzy at major domestic supermarkets, the company added.

Alongside this, "Wish Cat," which debuted on SBS in September, and "Metal Card Bot Season 2," launched on the EBS channel in August, also appear to be progressing smoothly. SAMG Entertainment expects these to contribute to high-profit generation ahead of the year-end peak season.

Kim Suhoon, CEO of SAMG Entertainment, stated, "Following the movie's success, Tinyping Season 5, Metal Card Bot Season 2, and the new IP Wish Cat are all showing stable growth trends across all indicators such as viewership ratings and MD sales volume," adding, "Traditionally, SAMG Entertainment's fourth-quarter performance has been significantly better than other quarters, so we expect a high sales achievement and a planned return to profitability in the upcoming fourth quarter."