[Click eStock] "SBS, Consecutive Content Deals with OTT... Target Price Up"

Daishin Securities analyzed on the 23rd that SBS's performance improvement is expected due to online video service (OTT) and consecutive content supply contracts. The investment opinion was maintained as 'Buy,' and the target stock price was raised to 29,000 KRW.

SBS recently signed a partnership with Netflix. The main points include △ Providing SBS's new and existing dramas, entertainment, and educational programs to domestic Netflix members △ Simultaneously releasing some of SBS's new dramas worldwide.

Kim Hoejae, a researcher at Daishin Securities, said, "Although the detailed contract terms have not been disclosed, it is presumed to be similar to the form that Studio Dragon and others signed with Netflix," adding, "Simultaneous airing recoups a significant portion of production costs, and originals guarantee a certain level of margin relative to production costs."

He emphasized, "SBS signed an annual content supply contract with Disney Plus for about three titles per year," and "With this Netflix contract, SBS has signed contracts with both the world's first and second largest OTT platforms."

He predicted that operating profit will turn positive on an annual basis next year. He said, "Performance improvement is expected due to increased programming from the recovery of TV advertising next year and the Netflix contract," and forecasted, "Operating profit next year will be 45.8 billion KRW, turning positive compared to the previous year."