Find Friend(s)
Chat
CHAT ROOMS
KPOP Lounge

General

YG Entertainment's operating profit disappoints in the first quarter of 2018 + possibility of profit improvement

By yckim124   Monday, May 14, 2018   25,966   2,971   178
misc

1

0

SHARES
  1. Google+
YG Entertainment saw disappointing financial results in the first quarter of 2018. 

According to Mirae Asset Daewoo on May 14, YG Entertainment failed to meet market expectations for the first half of 2018 with analysts dropping the stock target price by 6.8% to 30,000 KRW (28 USD).

YG Entertainment also saw a drastic decrease in operating profit and revenue compared to Q1 2017. Comparing YOY (Year Over Year), YGE's operating profit plunged by 84.4% and recorded 2.3 billion KRW ($2.15 million). The revenue dropped 27.7% YOY and recorded 77.3 billion won ($72.2 million). 

Financial analyst Park Jung Yeop commented, "They were looking forward to Big Bang's last tour before enlistment to reflect on the first quarter, however, their new variety shows had disappointing outcomes."

He added, "It'll take time to receive gains from their content business," and explained, "'MIXNINE' and 'Let's Live a Nice Life', which aired at the end of last year and beginning of this year, had a loss of about 8 billion KRW ($7.4 million) in production costs."

On a positive note, Park stated, "The new generation lineup including WINNER, iKON, and Black Pink's growth is not bad overall." The three groups' combined concert ticket sales in Japan this year so far in 2018 is around 34% of Big Bang's record of 1.44 million concertgoers last year. 

Park advised investors to watch out on YGE's possibility of profit improvement, subsidiary's loss decline, and the normalizing relationship with China. 
  1. misc.
  2. yg entertainment


TRENDING

GET AKP IN YOUR INBOX!

CONNECT WITH ALLKPOP

  1. Follow us on Instagram
  2. Subscribe on Youtube
  3. Follow us on Google+

BRAND PARTNERS

Save Me Drip
Save Me Drip
$18
Love Yourself
Love Yourself
$18
IDOL
IDOL
$18
Seoul Dad Hat
Seoul Dad Hat
$20