FNC Ad Culture reported a 29.5 percent increase in sales year over year.
In its first quarter’s earnings report on May 14, FNC Ad Culture announced that it recorded a 19.3 billion won (17,875,668 USD) in sales for the first quarter based on consolidated financial statements. This was an increase of 5.8 billion (5,371,539 USD), or around 29.5 percent, from the same period last year. More, it also reported that it had made an operating profit of 50 million won (46,306 USD) marking a 17-year streak of increased operating profits.
There are a number of changes that are being credited for the sales increase at FNC. In particular, there was the announcement in March that the largest shareholder changed from FNC Ad Culture to SM Entertainment. In the deal, SM emerged with a 31 percent stake in the company with FNC Entertainment retaining an 18 percent equity stake.
An additional reason is due to the companies decision to improve its corporate structure and work on growth. Based on its abundant liquidity, it is expected that FNC will take on different business endeavors. As the company diversifies its revenue streams, it is predicted that they will increase FNC’s competitiveness.
This is particularly important as the company’s popular group CNBlue plans out their military enlistment. An official from the company commented that “this year, Jung Yong-hwa joined the military. As such, there is a risk that the transfer of some of the companies share may result in a decrease in performance.”
In addition to different business endeavors, FNC plans to continue focusing on its talent. The company wants to continue to heavily invest in their actors, entertainers, and artists. Further, they are preparing to lay down a foundation for “stable growth” by investing in their next generation of artists. More, the company will also reportedly reapproach the Chinese market with rookie boy group SF9.
Starting from the second quarter, SM Entertainment will take over management rights from FNC. At the same time, the overhaul of FNC’s corporate structure, entrance into new business and further developing others will take place.
Translated by O.C
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