Spackman Entertainment 1Q19 net profit jumps on ‘Default’ contribution

Korea Town in New York City; taken August 2018.Korea Town in New York City; taken August 2018.

Spackman Entertainment reported Tuesday its first quarter net profit surged by more than four times to US$1.35 million, up from US$322,000 in the year-ago period.

The gross profit margin improved to 64 percent in the first quarter from 29 percent in the year-ago quarter, on the recognition of US$1.68 million as a share of profit for acting as the producer of the film “Default,” Spackman said.

Revenue for the quarter ended 31 March dropped 50 percent on-year to US$5.24 million, the producer of South Korean dramas said in a filing to SGX after the market close.

That was mainly due to the absence of the year-ago sales of US$4.52 million for distribution rights and video-on-demand sales for the South Korean ancillary market for the “The Outlaws,” which was co-presented by Spackman’s 51 percent-owned subsidiary Novus Mediacorp, the filing said.

Cost of sales dropped 75 percent on-year to US$1.86 million for the quarter, mainly on the absence of the year-earlier US$3.40 million copyright fee for “The Outlaws,” and a decrease of US$2.31 million from production of films on lower production costs, Spackman said.

In its outlook, Spackman said its upcoming romantic comedy film, “Crazy Romance,” has completed filming and is in post-production ahead of its expected South Korean premiere later this year.

In addition, its wholly owned subsidiary Studio Take is expected to release its first film “Stone Skipping,” in South Korea this year, the company said.

Spackman also pointed to its recently signed deal with Singapore’s Mediacorp to co-produce a South Korea-Singapore 20-episode drama called “Equity of Love,” with telecast expected in 2020.

The company said it was in the process of spinning off and listing Novus Mediacorp and its wholly owned subsidiary Frame Pictures as a combined entity on Singapore Exchange’s Catalist Board.

 

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