Spackman Entertainment reported Wednesday a second quarter net loss of US$1.53 million, 1 percent narrower than the US$1.55 million net loss in the year-ago quarter, as film production costs rose.
Revenue for the quarter ended 30 June rose 10 percent on-year to US$1.84 million, mainly on increased revenue from producing films, the producer of South Korean dramas said in a filing to SGX.
The rise was mainly on a higher percentage-of-completion from the “#Alone” project, produced by Zip Cinema, and revenue from “Crazy Romance,” Spackman said.
Cost of sales climbed 84 percent on-year to US$1.55 million, as costs for the production of films increased by more than three times to US$860,000 from US$240,000 in the year-ago period for the “#Alone” and “Crazy Romance,” projects, the filing said.
For the first half, Spackman reported a net loss of US$183,000, narrower than the US$1.23 million net loss in the year-ago period, on revenue of US$7.08 million, down 42 percent on-year.
In its outlook, Spackman pointed to Korean Film Council data showing 13.5 percent increase in total box office admission in the first half to 109.3 million and a 16.0 percent surge in total sales to a record 930.7 billion South Korean won, or around US$795.4 million.
“The group’s upcoming romantic comedy film, ‘Crazy Romance,’ produced by the group’s indirect wholly owned subsidiary, Zip Cinema, is set to release in Korea in the second half of 2019,” Spackman said. “Zip Cinema’s next major film, with the working title ‘#Alone,’ is expected to commence filming in the second half of 2019.”
Studio Take, Spackman’s indirect wholly owned subsidiary, is expected to release its first production, ‘Stone Skipping,’ in South Korea this year, the filing said.
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