Cube Entertainment has announced on 15th May that the revenue of the 1st quarter (Q1) has increased by 13.7% to 3.8361Bil Won. In the same quarter, operating profit has fallen by 20.8% to 0.33497Bil Won, which gives Cube Entertainment a net loss of 2.07181Bil Won.
Cube Entertainment expressed, “The increase in operating costs was due to one-off fees incurred for the merger with WooriSpac2, and had no relevance to current year’s real performance. The performance level in Q1 is not worrying. Moreover, if the commissions and listing fees were not included, Q1 profit would have a healthy performance as to Q1 of 2014.”
A total of 2.3Bil Won of these expenses do not have an effect on the company’s cash outflow, thus fully reflecting the performance in Q1. As such, it is expected that Cube Entertainment will have an improved performance from Q2 onwards.
Currently, artists of Cube Entertainment will be holding overseas activities more actively, thus, there is a higher expectation on this year’s revenue.
Last month, BEAST held Hong Kong fan meeting as a start, and will start to hold performances from May onwards, in Hong Kong and Taiwan. Also, they are currently coordinating schedules to enter into the Chinese lands. 4minute had charted #1 for 10 consecutive weeks on China’s largest music site QQ Music KPOP Albums category, thus showing potential success in China.
Meanwhile, BTOB had recorded sales of their Japanese album by 100k copies and had even held concerts successfully. Moreover, member Yook Sungjae who starred in ‘Who Are You – School 2015’ will certainly boost his star status, which will seemingly be able to contribute a large portion to Cube Entertainment’s growth.
Furthermore, iHQ, the largest shareholder of Cube Entertainment has recently form alliance in the broadcast media industry. With the synergy it can potentially bring and the advancement to foreign market, Cube Entertainment will be able to diversify its operations, as according to Cube representative.
CEO Park ChungMin expressed, “Q2 onwards, Cube’s main artists BEAST, 4minute, Hyuna, BTOB and more will make their comeback one after another. It is just a start to Cube Entertainment’s performance,” and, “With our merger with WooriSpac2 and listing on KOSDAQ, this year would be a year where Cube moves in the direction of becoming a leading KPOP entertainment,” he emphasized.
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