이 기사는 2021년 04월 22일 08:03 thebell 에 표출된 기사입니다.

South Korean content distribution company JTBC Studios swung to a net loss despite its positive performance last year due to losses from equity method investments.

JTBC Studios recorded revenue of 207.9 billion won ($186 million) in 2020, up 28% from a year ago, according to its regulatory filing on Tuesday. Its operating profit increased by 20% to 14.2 billion won thanks to growing over-the-top (OTT) media service markets at home and abroad.

However, the company swung to a net loss of 4.7 billion won last year, largely due to losses of associates accounted for using the equity method.

The company recorded 13 billion won in losses from equity method investments, which increased by more than 10 billion won in a year after posting 1.1 billion won in 2019.

Production companies that JTBC Studios acquired in 2019 started to reflect losses and gains on equity method from last year. B.A. Entertainment incurred the largest amount of loss on equity method of 5.1 billion won, followed by Perfect Storm Film and NPIO Entertainment, with losses of 4.2 billion won and 2.2 billion won respectively.

JTBC Studios actively purchased production companies in 2019 in a bid to strengthen its production capabilities to supply domestic and foreign OTT service providers. The company acquired Film Monster, a movie and TV series production company, in April for 20 billion won and purchased shares of B.A Entertainment and Perfect Storm Film for 31.2 billion won and 17 billion won, respectively.

“The performance of our production companies was sluggish as the airing of our contents has been delayed,” said an official at JTBC Studios. “Their performance is expected to improve if the contents are aired and the number of produced contents increases.” (Reporting by Mi-hyung Chung)