April 26, 2024

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[THE INVESTOR] Loen Entertainment will see double-digit profit growth in the coming two years on the back of burgeoning online music market, said Mirae Asset Daewoo on Sept. 22, suggesting a “buy” recommendation and 110,000 won (US$96.98) target price. 

The market grew from 190 billion won in 2010 to 340 billion won in 2013, and will leap again led by the mid-30s to mid-50s audience, said analyst Lee Hak-mu. 

Speakers with artificial intelligence will also help boost the market and Loen will continue to attract over 400,000 new subscribers every year, according to the analyst. 

Korea’s average revenue per user is still less than half of that in the US and Europe, which leaves room for further increase, added Lee estimating that Loen will be able to post 670 billion won revenue and over 100 billion won net profit in 2019.

By Hwang You-mee (glamazon@heraldcorp.com)