[Click eStock] "Contentsree Joongang, Major Anticipated Releases Lined Up This Year"

Exclusive OTT Rights and Anticipated Releases to Drive Performance Improvement
Box Office Recovery Remains a Key Challenge

DB Financial Investment analyzed that Contentree Joongang is expected to improve its performance this year due to securing exclusive OTT broadcasting rights and the release of numerous anticipated works. The target stock price was maintained at 12,000 KRW, with a 'Buy' investment rating.

Shin Eun-jung, a researcher at DB Financial Investment, stated, "In the first quarter of this year, the number of episodes aired for titles such as Okssi Buinjeon and The Art of Negotiation is expected to decrease compared to the previous year, resulting in sluggish sales and profits." However, she added, "From April, the Netflix recoup rate is expected to improve due to securing exclusive OTT broadcasting rights." She continued, "Tentpole titles that were absent last year, such as Good Boy, My Youth, Kind Man, and Esquire, are largely lined up in 2025," and explained, "Labor costs and production review expenses are also expected to be significantly optimized."

However, the decline in moviegoers remains a challenge. Researcher Shin noted, "The movie sector needs a recovery in Megabox's top-line growth through the return of audiences," and added, "Since many anticipated foreign films such as Miki 17, Snow White, and Minecraft are scheduled to be screened this year, we need to watch for a box office recovery." She projected that Contentree Joongang's consolidated sales for this year will increase by 10% year-on-year to 969.7 billion KRW, and operating profit will reach 16.4 billion KRW, achieving a turnaround to profitability.