YG Entertainment to recover in H2
YG Entertainment has been slow in the second quarter but will recover, said Hyundai Motor Investment and Securities on July 21, lowering the target price to 39,000 won (US$34.87) from 44,000 won.
Its revenue fell 14.5 percent on-year to 66.1 billion won and operating profit 12.3 percent to 5.9 billion won, estimated analyst Yoo Seong-man.
Although its artists were active in Japan the proceeds were not reflected in the quarter, explained the analyst.
Concert revenue from China has dwindled amid THAAD complications but revenue from digital content sales and commercials are increasing, noted Yoo, adding that G-Dragon and Taeyang’s concerts in Japan will boost its H2 earnings.
Meanwhile its subsidiary YG Plus is still struggling and collaboration with Naver will boost it in the latter half. When the earnings begin to improve, its stock price will regain as well, according to the analyst who maintained a “buy” recommendation.
Source: The Korean Herald (via @onebluemouse)