“Thank You, Heartsping!” SAMG Entertainment Clears 80 billion KRW ($6 million) in Inventory as Film Success and Structural Revamp Drive Profit Outlook for Q4

– Approximately 745 billion KRW ($55.8 million) in cumulative sales through Q3; 80 billion KRW ($6 million) in non-core inventory cleared
-Film Heartsping: Teenieping of Love, with over 1.23 million viewers, continues to perform well, with earnings split across Q3 and Q4.
-Catch! Teenieping Season 5 merchandise sold out, with strong sales for new IP Wish Cat; SAMG gears up for profitability in Q4.

SAMG Entertainment (CEO Suhoon Kim) reported solid sales growth and an 80 billion KRW ($6 million) inventory clearance for the third quarter, heightening optimism for a return to profitability by Q4.

On October 14, SAMG announced a year-over-year sales increase of approximately 140 billion KRW ($10.5 million) for the third quarter, bringing cumulative sales to roughly 745 billion KRW ($55.8 million). The company’s cumulative operating loss stands at around 151 billion KRW ($11.3 million).

In an effort to improve profitability, SAMG has aggressively tackled inventory issues this year as part of a “Big Bath” approach, reducing inventory assets from approximately 180 billion KRW ($13.6 million) to 100 billion KRW ($7.5 million). This restructuring significantly improves the company’s balance sheet.

“The tremendous success of Heartsping: Teenieping of Love has highlighted the power of a successful IP, and our employees feel its impact across the board,” a SAMG representative shared. “With both online and offline channels, much of our non-core inventory has been cleared, allowing us to focus primarily on toy merchandising assets for sale.”

SAMG anticipates that Q4 profitability will also benefit from the timing of film-related revenue, which will be split between Q3 and Q4.

Heartsping: Teenieping of Love, which attracted 1.23 million viewers and became the second highest-grossing Korean animation, premiered on August 7 and has maintained a steady audience with over 20,000 weekend viewers each week through October. SAMG projects that Q4 financials will reflect revenues from major licensing deals and other film-related IP sales.

Additionally, the October 10 live broadcast on SAMG’s YouTube channel Teenieping TV, which introduced Star Catch! Teenieping, drew nearly 33,000 concurrent viewers. The show’s merchandise demand has far exceeded supply, causing frequent sellouts at major retailers.

In tandem with Teenieping’s ongoing popularity, Wish Cat, which debuted on SBS in September, and Metal Cardbot Season 2, which launched on EBS in August, are both performing well. SAMG expects these programs to fuel high-margin revenue as they approach the holiday shopping season.

“With hit titles like the new Teenieping Season 5, Metal Cardbot Season 2, and the debut IP Wish Cat, SAMG’s viewership and merchandising sales metrics are displaying a steady growth trend,” CEO Suhoon Kim remarked. “Historically, our Q4 results outperform other quarters, so we expect substantial revenue growth and a planned shift to profitability this quarter,” he added, expressing confidence in the company’s positive outlook.