[THE INVESTOR] Studio Dragon’s operating profit for the whole year will double from last year, said Shinhan Investment on May 23, raising the target price to 132,000 won (US$122.41) from 118,000 won.
Demand for contents from overseas operators will rise significantly, while sales of completed dramas will gain speed. Its new releases including “Mr. Sunshine” is garnering expectations, said analyst Hong Se-jong estimating that profits from Netflix this year will reach 47 billion won.
Given that the entire amount of exports are profits the firm, it will be able to reap over 7 billion won quarterly profit. Revenue in 2018 will hike 27.9 percent from last year to 366.7 billion won and operating profit by 100.4 percent to 66.1 billion won, said Hong.
From the third quarter, its profits will increase, and operating profit in the second half will surge 346.5 percent to 45.2 billion won, estimated the analyst maintaining a “buy” recommendation and a “top pick” rating in media industry.
By Hwang You-mee (firstname.lastname@example.org)