(May include inaccuracies)
IM Investment and Securities Co. has predicted that IHQ will meet the Earning Guidance requirement (expected results) for this year due to BEAST’s Asia promotions and Kim WooBin’s increasing CF fees.
Kim HyunJoo researcher in IM Investment said, “In 2013, the consolidated accounts showed that estimated revenue of IHQ has increased by 24.7% to 56 Billion Won in a year. However, it is estimated that there will be a 82.3% reduction (4 Billion Won) in operating profits compared to last year.” He continued, “Cube Entertainment reflected results starting from the 4th quarter, which had seen a growth in appearance. However, 2EYES’ album sold sluggishly and drama ‘Princess Aurora’ sees a low profitability.”
That said, Kim Researcher said, “For this year, we estimate revenue to be 80 Billion Won and 8 Billion Won for net profit, which shows an increase of 31.2% and 2109.9% compared to last year” and, “Subsidiary Cube Entertainment will see an increase this quarter, as we anticipate BEAST’s activities in Asia as well as actor Kim WooBin’s CF fees. Moreover, ‘I Hear Your Voice’ writer Park HyeRyun has a high possibility of writing a new drama for mainstream broadcast, and therefore, we think that IHQ will meet its requirement this year,” he expleined.
On September 30th last year, IHQ acquired shares of Cube Entertainment and expanded from their existing artists (Park JaeBom, 2EYES) to include the addition of BEAST, 4minute, BTOB, G.NA and more. BEAST’s advancement to the Japanese market this year will be one that is worth anticipating, according to Kim Researcher.
He added, “BEAST signed with Japan’s advertisement company Hakuhodo DY in May last year and had sealed a 3-years deal with Hakuhodo DY for any large events organizing” and, “Cube Entertainment was guaranteed a minimum amount of 8 Billion Won while profit in excess will be distributed based on a percentage of the revenue. In 2014, BEAST will have a total of 52 performance in Korea and Asia promotions, including Japan. In 2015, BEAST has been scheduled to perform in Tokyo Dome, which will satisfy the Earning Guidance as well.”
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