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The Korea Herald
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THE INVESTOR
March 29, 2024

Stocks & Bonds

[EQUITIES] ‘Studio Dragon inks largest drama deal with Netflix’

  • PUBLISHED :June 22, 2018 - 11:21
  • UPDATED :June 22, 2018 - 11:21
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[THE INVESTOR] Studio Dragon’s drama sales to Netflix will buoy its earnings, said Shinhan Investment on June 22, raising the target price to 146,000 won (US$131.63) from 132,000 won.




It has signed a sales contract with Netflix for the drama “Mr. Sunshine” and the profits are estimated to be the largest amount ever for television dramas. The total production cost is 40 billion won while sales of broadcasting rights to CJ E&M is 22 billion won and profits from domestic VOD service 3 billion won. The total profits from the Netflix deal amounts to 57 billion won, and gross profit margin will top 40 percent, said analyst Hong Se-jong.

Studio Dragon’s operating profit in the second quarter will climb 1.7 percent on-year to 9 billion won and in the third quarter will soar 246.9 percent to 23.1 billion won. This is the most conservative estimate excluding profits from China, the analyst noted.

Its annual revenue growth rate hovers above 30 percent. Operating profit of the whole company this year will more than double and profits from China has not been fully recognized, said Hong maintaining a “top pick” rating in media industry. 

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

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