[Company Talk] Cube Entertainment’s harsh debut on KOSDAQ.. Reason why Cube is unconcern?

Cube Entertainment which had recently become the first entertainment agency to go through a listing via a SPAC, had a harsh time for almost the whole month since debut.

On 6th May, Cube Entertainment’s share price has dropped by 1.62% to 3,040 Won at its closing price. As compared to April 8th when they first listed (the price then was 3,735 Won), the price has dropped to about 18.6%.

But Cube Entertainment are highly confident despite the harsh circumstances. Idol group Beast and 4minute are preparing for their China advancement. Even before any releases, the responses obtained were great, and this is the reason why they believe foreign sales will increase steeply.

Accounting firms estimated that Cube Entertainment will have a sales revenue of 26.2bil Won, an increase by 36% compared to last year’s sales revenue of 19.3bil Won.

To note, this figure has yet to take into account of the estimated sales from the Chinese market, thus, Cube Entertainment is expected to achieve the rather modest figure, according to Cube representative.

The following are a set of Q&As with representatives from Cube Entertainment.

Q: Cube Entertainment had once withdrawn from IPO, what’s the reason behind it?

A: In the first quarter last year, Sewol incident happened and that took a toll on our sales revenue. Currently our domestic and foreign sales are in the ratio of 70 to 30. We aim to increase to 50:50 so that any threats to local sales will not influence  our overall sales performance.

Q: What is your outlook on this year’s performance?

A: There are no official estimations from the company. However, according to estimates given by accounting firm, sales revenue would be 26.2bil Won. This has yet to take into account of the China advancement BEAST and 4minute are preparing for. Given China’s sales, the target given will be easily achievable.

Q: Which group is contributing a high portion of sales?

A: Looking at sales growth alone, 7-members group BTOB is good. BTOB member Yook Sungjae is recently gaining good responses from his appearance on KBS2 drama ‘Who Are You – School 2015’.

Q: How is the visibility (of Cube artists) in China’s sales?

A: 4minute and BEAST are planning to advance into the Chinese market this year. Last week, BEAST started with a fan meeting. The responses for 4minute was better than expected. Although there were no albums released, 4minute tops on QQ Music Chart. Although we have yet to start, there are extremely strong demands from performance organizers for 4minute. If we officially set foot in the market, we see that sales revenue from China will increase.

Q: Regional expansion plans other than China?

A: We have advanced into Japan and the responses for BEAST and BTOB were great. A half of the foreign sales revenue came from Japan. The rest were from Europe where we held infrequent performances. Currently we do not have plans to advance fully into the South East Asian market, but we are keeping a keen eye on it.

Q: What is the strength of Cube Entertainment as compared to other entertainments?

A: We deal in contents production but we are persistent. Some companies only released two albums per year, but Cube Entertainment releases an album a month for Cube artists. I think it’s a charm for investors who seek stable earnings.

Q: For entertainment companies, reliance on one member has a strong star risk, and that is most of the time the largest weakness. How do you manage it?

A: When we debut idols, we do not choose friends who are problematic, even if they have good skills. Among our employees, we have people who worked in JYP Entertainment for a long time, and thus, they have the know-hows on artists training. Star risks are the most important aspect for (our) company. So far, no such case has happened.

Please take out with full credits

Trans: loveindacube.wordpress.com

Source: NEWIS

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