Mirae Asset Securities Co. revealed YG Entertainment’s expectations for earnings in the second half of this year and in 2022
On the 2nd, Mirae Asset Securities Co. revealed YG Entertainment’s expectations for earnings in the second half of this year and in 2022 with official activities of its key artists such as the comeback of GD and the entire group BLACKPINK. The investment rating was maintained at ‘BUY’ and the target price was raised to 69,000 won. The current share price is 51,900 won, with 33% upside potential.
Mirae Asset Securities researcher Park Jeong Yeop estimated that this year’s operating profit increased by 545.2% compared to the same period of the previous year to 39 billion won, as YG Entertainment’s key artists lined up their activities in earnest. Next year’s operating profit is expected to rise 179% compared to this year to 70 billion won.
Researcher Park analyzed that “fandom ARPU (average sales per subscriber) will show a steep rise following membership sales.”
However, it was diagnosed that “there is a variability in quarterly earnings according to the artist’s schedule, and there is a possibility that the loss related to the subsidiary production ‘Joseon Exorcist’ will be reflected.”