SAMG Entertainment (CEO Kim Suhun, hereafter SAMG Entertainment) has announced its first quarter business results, reporting a quarterly profit.
According to the quarterly report submitted by SAMG Entertainment on May 14, the company recorded consolidated sales of 35.7 billion KRW, operating profit of 6.29 billion KRW, and net profit of 5.67 billion KRW in the first quarter of this year. In particular, sales increased by approximately 41% compared to the same period last year, and the company maintained a profit for the second consecutive quarter following a turnaround in the fourth quarter of last year, demonstrating a tangible improvement in profitability.
SAMG Entertainment’s first-quarter licensing revenue reached 7.6 billion KRW, representing approximately 103% growth compared to the same period last year. Demand for IP-based licensing collaborations expanded across all business sectors, including cosmetics, F&B, and fashion, with partners such as Lotte Wellfood, Clio, CU, and Spao. Furthermore, following the success of the film "Love's Hachuping," which was released in August last year, the target age group for character IPs broadened from children to all age groups, contributing to the growth in licensing revenue.
During the same period, product sales amounted to 26.8 billion KRW, an increase of approximately 35% year-on-year, making the effectiveness of the OSMU (One Source Multi Use) strategy visible. The strong sales of major toy products such as "Auroraping Castle House," the expansion of pop-up stores, and diversification of contract structures in the form of GWP (Gift With Purchase) have strengthened the organic revenue structure between IP content and products, driving overall growth.
The improved cost structure since the fourth quarter of last year also played a significant role in SAMG Entertainment’s continued profitability. Inventory assets are currently managed at 9.6 billion KRW, down by approximately 52% compared to the same period last year. In particular, since the third quarter of last year, the company has proven its ability to manage inventory efficiently through the successful disposal of stagnant inventory and the use of big data enabled by internalizing distribution channels.
The company’s global growth remains strong. SAMG Entertainment’s overseas sales in the first quarter reached approximately 11.3 billion KRW. In China, "Catch! Teenieping" Season 4 and "Metal Card Bot" Season 2 have both been successful, resulting in robust product and licensing sales. In Japan, the company began selling "Catch! Teenieping" Season 2 MD at approximately 1,200 major stores in October last year, marking a full-scale entry into the market, and has been expanding its local fandom through positive responses at popular events such as pop-up stores.
Additionally, SAMG Entertainment is accelerating the expansion of its brand value through collaborations with global companies such as Hyundai Motor, Kia Tigers, SM Entertainment, and Devsisters (Cookie Run). In particular, after the collaboration between Kia Tigers and "Catch! Teenieping" was announced, the rush to purchase "00Ping" uniforms resulted in queues that wrapped around the Kia Tigers’ dedicated stadium more than one and a half times, and adult authentic uniforms sold out quickly. Furthermore, according to the company, more than 45,000 visitors attended Hyundai Motorstudio Goyang during the first week of May to see Hachuping riding the IONIQ 5.
Kim Suhun, CEO of SAMG Entertainment, stated, "The overall performance has improved thanks to the balanced increase in brand value of our major IPs such as 'Catch! Teenieping' and 'Metal Card Bot,' as well as the effects of building a distribution network and platform system based on big data. This year marks a new beginning as we embark on full-scale global expansion and target older age groups. SAMG Entertainment’s ultimate goal is to become a global content IP holder loved by people around the world."
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