3Q 2019 Earnings Release
Studio Dragon November 7, 2019 Disclaimer
This financial information in this document are consolidated earnings results based on K-IFRS.
This document is provided for the convenience of investors only, before the external audit on our 3Q 2019 financial results is completed. The audit outcomes may cause some parts of this document to change.
In addition, this document contains “forward-looking statements” – that is, statements related to future, not past, events. In this context, “forward-looking statements” often address our expected future business and financial performance, and often contain words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks” or “will”. Our actual results to be materially different from those expressed in this document due to uncertainties. 3Q 2019 Earnings Release TABLE OF CONTENTS
1 3Q 2019 Highlights
2 3Q 2019 Operating Performance
º Programing º Distribution º Cost
3 Growth Strategies
Appendix We Create New Culture 1 3Q 2019 Highlights
(1) Programming Distribution Production Revenue Revenue Revenue Trend
W131.2bn w60.8bn w60.0bn 13titles (YoY +6.0%) (YoY +24.4%) (YoY -5.4%) (YoY +5 titles)
Note (1) Each quarter includes all titles in progress - 4 - We Create New Culture 12 3Q 2019 Operating Performance
Summary
3Q19 Revenue (+6.0% YoY) – Hit a record high, driven by diversified business, premium IP, and expanded lineups OP (-49.2% YoY) – Maintained stable fundamentals amid last year’s high-base
Revenue Operating Profit Net Profit
Unit: Wbn Unit: Wbn Unit: Wbn
17.4% 14.0% 128.2 131.2 123.7 9.8 10.4 9.9% 8.2% 8.8% 11.4 111.8 8.4% 8.3% 101.7 5.7% 11.5 9.5 60.3 60.0 63.4 37.8 56.2 1.7% 0.4% 21.5 17.3 11.5 54.4 58.1 60.8 11.0 10.8 10.9 9.2 48.9 44.1 7.3 0.4 1.7 3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19
Programing Distribution Others Operating Income OP Margin Net Income NP Margin
- 5 - We Create New Culture 2 3Q 2019 Operating Performance
Programming
3Q19 Hit a record high (+24.4% YoY) for two consecutive quarters, due to diversified platforms incl.
Programming Revenue Production Trend Note (1)
Unit: Wbn Unit: Titles
100.0% 100.0% 100.0% 60.8 58.1 90.9% 54.4 3.7 10.4 76.9% 48.9 0.6 0.2 44.1 0.2
53.8 54.4 48.7 50.4 43.9 13 11 12 11 8
3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19
Captive Non-captive Current Titles % of Captive Titles Note (1) Each quarter includes all titles in progress - 6 - We Create New Culture 2 3Q 2019 Operating Performance
Distribution
3Q19 Posted solid revenue, driven by continued market influence through large-scaled IPs incl.
Distribution Revenue No. of Library Sales
Unit: Wbn Unit: Titles
※ Note(1) 0.61bn 0.35bn 0.45bn 0.44bn 0.41bn 148 136 22 63.4 126 60.3 60.0 14 56.2 5 108 104
37.8 17 25 46.2 42.2 43.9 42.6 121 122 126 24.8 87 83 18.1 17.2 13.0 13.6 16.1
3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19
Domestic International Old Titles New Titles Note (1) Average distribution revenue per title (distribution revenue / number of library sales) - 7 - We Create New Culture 2 3Q 2019 Operating Performance
Cost
3Q19 OPEX W120.3bn (+17.6% YoY) : COGS Ratio 88.3% (+8.4%p YoY), SG&A Ratio 3.3% (+0.6%p YoY)
4Q19 Continue pre-emptive investment to strengthen drama quality, aim to stabilize cost efficiency
COGS and SG&A Ratio OPEX
Unit : % Unit: Wbn
93.6 3Q18 4Q18 1Q19 2Q19 3Q19 88.0 88.3 86.6 COGS 98.9 95.2 96.8 112.8 115.9
79.9 Labor Costs 1.8 2.8 1.9 2.4 2.3
Dep. & Amort. 0.1 0.1 0.3 0.3 0.4 5.9 Commissions 0.5 0.7 0.9 0.8 0.8
3.6 3.6 3.3 Marketing 0.1 0.0 0.0 0.2 0.0 2.7 Others 0.8 2.5 0.9 0.9 0.8
3Q18 4Q18 1Q19 2Q19 3Q19 OPEX 102.2 101.3 100.8 117.4 120.3
COGS Ratio SG&A Ratio
- 8 - We Create New Culture 3 Keyword for Growth – “G.L.O.B.A.L”
Growth drivers – “G.L.O.B.A.L”, Sizable top-line and profit expansion G L O B A L Growth Localization Original Build Accelerate Long-tail
overseas U.S./Asia original core OTT competition revenue co-planning Dragon U.S. drama capabilities digital expansion proportion co-production
50% + new + 2020 Memories of
- 9 - 3Q 2019 Earnings Release APPENDIX
1 Financial Statements Summary
º Financial Position º Income Statement
2 4Q 2019 Lineup We Create New Culture 1 Financial Statements - Financial Position
(Unit: Wbn) 3Q18 2Q19 3Q19 % QoQ % YoY Total Assets 491.2 567.8 585.4 3.1 19.2 Current Assets 256.9 247.2 259.0 4.8 0.8 Cash and Cash Equivalents 162.8 119.8 103.5 (13.6) (36.4) Others 94.0 127.5 155.5 22.0 65.4 Non-Current Assets 234.3 320.6 326.4 1.8 39.3 Tangible Assets 1.1 1.4 1.3 (5.2) 24.9 Intangible Assets 171.9 235.3 230.0 (2.2) 33.8 Others 61.3 83.9 95.1 13.3 55.0 Total Liabilities 91.0 150.0 154.8 3.3 70.2 Current Liabilities 84.7 143.8 146.3 1.8 72.8 Non-Current Liabilities 6.3 6.2 8.5 38.0 35.7 Shareholders’ Equity 400.2 417.8 430.6 3.0 7.6 Equity Capital 333.6 334.1 335.7 0.5 0.6 Retained Earnings 66.1 84.2 95.7 13.7 44.8 Other Components of Equity 0.5 (0.5) (0.8) CR TTR
Key Financial Ratios Current Ratio (%) 303.3 171.9 177.0 5.1%p (126.3)%p
Net Debt (Net Cash) to Equity (%) (40.7) (28.7) (24.0) 4.7%p 16.7%p Cash Ratio (%) 192.3 83.3 70.7 (12.6)%p (121.6)%p
Note (1) K-IFRS consolidated basis (2) Current Ratio = Current Assets / Current Liabilities, Net Debt (Net Cash) to Equity = Net Debt (Net Cash) / Shareholders’ Equity, Cash Ratio = Cash and Cash Equivalents / Current Liabilities (3) TTR (Turn To Red), TTB (Turn To Black), CR (Continue Red), n/a (not available) - 11 - We Create New Culture 1 Financial Statements - Income Statement
(Unit: Wbn) 3Q18 4Q18 1Q19 2Q19 3Q19 % QoQ % YoY 2017 2018 % YoY
Sales Revenue 123.7 101.7 111.8 128.2 131.2 2.3 6.0 286.8 379.6 32.4
Programming 48.9 54.4 44.1 58.1 60.8 4.7 24.4 131.2 178.1 35.7
Distribution 63.4 37.8 56.2 60.3 60.0 (0.6) (5.4) 111.9 162.1 44.9
Others 11.4 9.5 11.5 9.8 10.4 5.3 (9.5) 43.7 39.4 (9.7)
OPEX 102.2 101.3 100.8 117.4 120.3 2.4 17.6 253.8 339.7 33.8
Cost of Goods Sold 98.9 95.2 96.8 112.8 115.9 2.7 17.1 239.7 324.0 35.2
SG&A 3.3 6.1 4.0 4.6 4.4 (5.6) 31.0 14.1 15.7 10.7
Operating Profit 21.5 0.4 11.0 10.8 10.9 1.2 (49.2) 33.0 39.9 21.0
Margin (%) 17.4 0.4 9.9 8.4 8.3 (0.1)%p (9.1)%p 11.5 10.5 (1.0)%p
Non-operating Profit 0.6 1.3 2.2 1.1 2.2 96.6 281.9 (2.7) 5.7 TTB
Non-operating Income 0.9 1.6 3.4 3.6 4.8 34.7 434.0 1.4 7.0 392.9
Non-Operating Expenses 0.3 0.3 1.2 2.5 2.6 6.5 701.9 4.1 1.3 (68.9)
Pre-tax Profit 22.1 1.7 13.2 11.9 13.1 10.1 (40.6) 30.3 45.6 50.8
Income Taxes 4.8 (0.0) 4.0 4.6 1.6 (65.7) (66.7) 6.4 9.8 52.7
Net Profit 17.3 1.7 9.2 7.3 11.5 57.1 (33.5) 23.8 35.8 50.3
Margin (%) 14.0 1.7 8.2 5.7 8.8 3.1%p (5.2)%p 8.3 9.4 1.1%p
Note (1) K-IFRS consolidated basis (2) TTR (Turn To Red), TTB (Turn To Black), CR (Continue Red), n/a (not available)
- 12 - We Create New Culture 2 2019 4Q Lineup
Distributor ∙ tvN ∙ tvN ∙ tvN ∙ tvN ∙ Date (#. of episodes) ∙ Sept. 25~Nov. 14 (16) ∙ Sept. 28~Nov. 17 (16) ∙ Oct. 21~Dec. 10 (16) Nov. 20~Jan. 9 (16) ∙ ∙ ∙ ∙ Ryu Yong-Jae / Lee Jong-Jae Writer / Director Park Jung-Hwa, Kim Myo-Jin / Baek Mi-Kyung / Shin Woo-Chul So Won, Lee Young-Joo / ∙ ∙ Yoon Shi-Yoon / Jung In-Sun Main Cast Han Dong-Hwa Jee Chang-Uk, Won Jin-Ah Shin Yoon-Sub ∙ Lee Hye-Ri, Kim Sang-Kyung ∙ Moon Geun-Young, Kim Sun-Ho
Distributor ∙ tvN ∙ OCN ∙ OCN ∙ tvN Date (#. of episodes) ∙ Dec. ~ (16) ∙ Sept. 18~Nov. 7 (16) ∙ Oct. 12~Dec. 1 (16) ∙ Dec. 1~ Feb. 2 (10) Writer / Director ∙ Jang Hong-Chul / Sung Yong-Il ∙ Baek Jung-Chul / Kim Yong-Soo ∙ Jun Young-Shin, Won You-Jung / ∙ O’PEN-winning dramas Main Cast ∙ Yoon Kyun-Sang, Keum Sae-Rok ∙ Lee Yo-Won, Choi Gwi-Hwa Lee Yoon-Jung ∙ program.tving.com/tvn/dramastage2019 ∙ Lee Min-Ki, Lee You-Young
- 13 - Thank You
Studio Dragon Investor Relations | [email protected] | www.studiodragon.net 이 종목의 더 많은 IR정보 확인하기
주주와 기업을 연결하고 응원합니다.