[HanCinema's News] Contentree JoongAng Stocks Fall 10% Following Third Quarter Earnings Report

The media company Contentree JoongAng saw its stock price tumble from 1080 won to just 9540 won on October 28th following a weak third quarter earnings report. Contentree JoongAng is a media company with its main subsidiaries, SLL, Megabox, and HLL being heavily involved in media distribution, with Megabox in particular being one of South Korea's main theater chains. The company's overall value has contracted 14.7% to around 165 million dollars.

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According to a Samsung Financial Network analyst connected to the report, Contentree JoongAng lacked any consistent series during this period, an issue only recently resolved with the continuous airing of "Family by Choice" which only started on JTBC on October 9th after the third quarter already ended. This had also damaged Contentree JoongAng's position in regard to international sales, particularly with streaming content. SLL in particular is expecting a four million dollar loss.

Megabox also underperformed expectations in part because "I, The Executioner" only earned around two thirds the admissions of "The Roundup: Punishment" earlier this year despite both action cop films having a similar profile. As a distribution company, Contentree JoongAng relies heavily on captive audiences. Its fortunes are also closely tied to media trends and products beyond its control as it heads into the final quarter this year, with high expectations due to the holiday season.

Written by William Schwartz