SAMG Entertainment Surpasses 116.4 Billion KRW($88.3M) in Annual Revenue! Strong Growth in Product Sales, Licensing, and Overseas Markets Signals Profitability

– 2024 annual revenue reaches 116.4 billion KRW ($88.3M), up 22.4% year-over-year; Q4 profitability helps narrow operating losses by 35%
– Inventory clearance and in-house distribution reduce costs of sales and SG&A expenses by approximately 22% in Q4
– Licensing revenue surges 90%, product sales climb 16%; major corporate collaborations, including SM Entertainment, expected to continue
– Overseas revenue up 43%, driven by expansion into China, Japan, and Russia, fueling global growth

SAMG Entertainment (CEO Suhoon Kim) has announced its financial results for 2024, revealing strong revenue growth and a significant reduction in operating losses.

According to the company’s annual business report, SAMG Entertainment posted 116.4 billion KRW ($88.3M) in consolidated revenue, marking a 22.4% increase compared to the previous year. Meanwhile, its operating loss narrowed to 6.1 billion KRW ($4.6M), a 35% improvement, reflecting a turnaround in Q4, where the company achieved 9 billion KRW ($6.8M) in operating profit.

Several factors contributed to the company’s Q4 rebound, including inventory clearance, internalization of distribution networks, improved profitability in licensing, and continued growth in product sales. Together, these efforts created a synergistic effect that bolstered financial performance.

A company representative noted, “By the end of Q3 last year, we had completed restructuring non-core businesses and clearing excess inventory. Additionally, our focus on internalizing distribution channels, a key initiative from our IPO, has yielded significant results. As a result, cost of sales and SG&A expenses in Q4 each declined by approximately 22%.”

The surge in licensing revenue has also played a pivotal role in this turnaround. Following the box office success of <Heartsping: Teenieping of Love> in the third quarter of last year, the number and scale of licensing partnerships grew significantly, pushing the company’s annual licensing revenue to KRW 21.1 billion (approximately $15.6 million) in 2024—a more than 90% increase from the previous year.

Meanwhile, product sales saw an equally impressive performance. In December, SAMG’s merchandise experienced a sellout frenzy, contributing to a 16% year-over-year increase, bringing annual product revenue to 89.4 billion KRW ($67.8M). The numbers underscore the long-term commercial success of its animation IPs.

The company also saw explosive growth in overseas markets, with global revenue soaring 43% year-over-year to 25.4 billion KRW ($19.3M). Since the expansion of Catch! Teenieping into China, international revenue has been rising steadily, increasing by at least 7 billion KRW ($5.3M) annually. Following SAMG’s 2023 entry into Japan’s merchandising market and Russia, the company is now preparing for further global expansion into Southeast Asia and beyond through new partnerships.

As the company moves into 2025, SAMG is shifting its focus toward older audiences. Following the strategic partnership with SM Entertainment announced in February, the company is set to roll out a range of collaborations and merchandise targeting teenagers, as well as Millennials and Gen Z. Additionally, further partnerships with global corporations are in the pipeline, sparking anticipation for the expanded reach of SAMG’s intellectual properties.

Reflecting on the company’s transformation, CEO Suhoon Kim stated, “With the improvements we achieved in Q4, SAMG has positioned itself as a company capable of sustained annual profitability. In 2025, we will leverage our accumulated data to drive tangible business results, expand our global footprint, and launch multi-platform ventures, making this a pivotal year for SAMG’s next phase of growth.”