Spackman Entertainment swings to 2018 net loss amid higher expenses

South Korea Kimchi package

Spackman Entertainment Group reported on Thursday a 2018 net loss of US$2.16 million, swinging from a year-ago profit of US$2.98 million amid higher expenses and a year-earlier gain.

Revenue for the year ended 31 December rose 6 percent on-year to US$21.85 million, the South Korean drama producer said in a filing to SGX after the market close on Thursday.

General and administrative expenses increased 33 percent on-year for 2018 to US$80.3 million, mainly on the acquisition of Take Pictures, Frame Pictures and Constellation and an increase in allowance for doubtful debts related to a third party production company.

“The acquisition of Take Pictures, Frame Pictures and Constellation resulted in an increase in personnel expenses due to increase in number of employees, service fee and rental expenses,” it said.

Revenue from distribution of films made up 30 percent of total revenue, coming in at US$6.58 million for 2018, up from US$4.55 million in 2017, mainly on the video on demand sales for “The Outlaws,” Spackman said.

Production of films and others contributed 40 percent of revenue, coming in at US$8.79 million for the year, down from US$12.86 million in 2017, mainly as the percentage-of-completion for “Crazy Romance” in 2018 was lower compared with “Golden Slumber” in 2017, it said. “Crazy Romance” is expected to premiere in South Korea in 2019, it added.

Leasing of equipment’s contribution to revenue was US$4.14 million, up from US$2.25 million in 2017, on the acquisition of Frame Pictures at end-March 2017, it said.

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