SM ENTERTAIMENT GROUP EARNINGS RELEASE (2018.08.14 at 4 pm. in Yeouido, Korea)
www.smentertainment.com/Overview/Introduction
Bloomberg Quote
1. FY2018.2Q HIGHLIGHTS
First-half consolidated sales of W235.1bn, reached the highest sales in the first half
> TVXQ single tour 1 million reached
> Reached highest sales due to the earnings growth in the song-selling and advertising business
> Japan: 1.1 million audience in the first half of the year, YOY 70% increase
> SMS C&C, expected record-high quarterly sales turnaround due to increased advertising sales
2. Major breakdown in 2H
> Rapid revenue growth from global video platforms such as YouTube
> Established Music Creative Partners Asia with seven domestic companies including YG, JYP, and Big Hit, and expect royalties to increase from strengthened bargaining power to YouTube
> Expansion of Korean Netflix 'oksusu' contents investment, and increase in SM C&C profitability due to expansion of new media platforms such as YouTube, Netflix, Amazon, Naver, and KaKao
3. Impression
It was a different atmosphere from the JYP Ent.'s IR. I felt something old, and the IR presenter 10 minutes late due to the traffic jam. They could not answer well about the first half and the last year's YouTube related revenue. There was a sense of imperialism in which the old Rome was trying to spread the Roman culture to the world. There seemed to be no localization strategy, which helps the local culture to grow itself in China. They were just concentrating on spreading Korean culture to the world. On the other hand, JYP Ent. established Joint Venture with Tencents, and targeting Chinese local market with Chinese local talents. This is probably the difference from the president's ideology and corporate culture.
One encouraging thing was that SM C&C's ad sales increased sharply, and it is expected to turn profitable in this year. We expect 2H and next year as the company is turning profitable due to a sharp rise in sales. If they show the financial performance of SM C&C ,which was acquired by SM in 2012, it could prove SM's ability as M&A player. If I had the option, I would probably buy stocks of SM C&C. This year's sales are estimated at W150bn-200bn, and the market cap is W200bn, which is a pretty good option for entertainment stocks.
#askajumma #Wonderful #SM #K-Pop
If you want to find out more information or any help about Korea, please visit our Foriengers Asked Questions ("FAQ") site.
www.faqfriend.com
www.facebook.com/kimchingoo
http://pf.kakao.com/_xbxhTuC
www.smentertainment.com/Overview/Introduction
Bloomberg Quote
1. FY2018.2Q HIGHLIGHTS
First-half consolidated sales of W235.1bn, reached the highest sales in the first half
> TVXQ single tour 1 million reached
> Reached highest sales due to the earnings growth in the song-selling and advertising business
> Japan: 1.1 million audience in the first half of the year, YOY 70% increase
> SMS C&C, expected record-high quarterly sales turnaround due to increased advertising sales
2. Major breakdown in 2H
> Rapid revenue growth from global video platforms such as YouTube
> Established Music Creative Partners Asia with seven domestic companies including YG, JYP, and Big Hit, and expect royalties to increase from strengthened bargaining power to YouTube
> Expansion of Korean Netflix 'oksusu' contents investment, and increase in SM C&C profitability due to expansion of new media platforms such as YouTube, Netflix, Amazon, Naver, and KaKao
3. Impression
It was a different atmosphere from the JYP Ent.'s IR. I felt something old, and the IR presenter 10 minutes late due to the traffic jam. They could not answer well about the first half and the last year's YouTube related revenue. There was a sense of imperialism in which the old Rome was trying to spread the Roman culture to the world. There seemed to be no localization strategy, which helps the local culture to grow itself in China. They were just concentrating on spreading Korean culture to the world. On the other hand, JYP Ent. established Joint Venture with Tencents, and targeting Chinese local market with Chinese local talents. This is probably the difference from the president's ideology and corporate culture.
One encouraging thing was that SM C&C's ad sales increased sharply, and it is expected to turn profitable in this year. We expect 2H and next year as the company is turning profitable due to a sharp rise in sales. If they show the financial performance of SM C&C ,which was acquired by SM in 2012, it could prove SM's ability as M&A player. If I had the option, I would probably buy stocks of SM C&C. This year's sales are estimated at W150bn-200bn, and the market cap is W200bn, which is a pretty good option for entertainment stocks.
#askajumma #Wonderful #SM #K-Pop
If you want to find out more information or any help about Korea, please visit our Foriengers Asked Questions ("FAQ") site.
www.faqfriend.com
www.facebook.com/kimchingoo
http://pf.kakao.com/_xbxhTuC
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