SAMG Entertainment Reports Cumulative Sales of KRW 92.8 Billion and Operating Profit of KRW 10.9 Billion for the First Nine Months, Maintaining Stable Earnings Through Cost Efficiency

• – Q3 consolidated revenue of KRW 21.7 billion; operating loss narrowed by 86.7% year-on-year through improved cost structure
• – Licensing business supports stable profitability despite seasonal dip in product sales
• – Following the box-office success of “Heartsping: Teenieping of Love”, SAMG Entertainment strengthens its market position through major brand collaborations and expands its own IP lineup in H2
• – Brand store targeting Gen Z and global consumers scheduled to launch later this year

Global IP content company SAMG Entertainment (KOSDAQ: 419530; CEO Suhoon Kim) announced that it posted cumulative sales of KRW 92.8 billion and an operating profit of KRW 10.9 billion for the first three quarters of 2025. Despite the seasonal downturn, the company maintained a stable profit structure, achieving over KRW 10 billion in operating profit.

In the third quarter, SAMG Entertainment recorded consolidated revenue of 21.7 billion won and an operating loss of 700 million won, reflecting typically slower seasonal demand. Revenue declined approximately 13.1% year-on-year due to the high base created by the previous year’s box-office performance of “Heartsping: Teenieping of Love”. However, a reduction in cost of goods sold and SG&A expenses significantly improved cost efficiency, narrowing the operating loss by 86.7%.

While product sales declined seasonally, licensing revenue remained steady quarter-on-quarter, helping stabilize the company’s revenue mix. As product sales softened, licensing revenue accounted for more than a 9 percentage-point increase compared to the previous quarter.

SAMG Entertainment’s expansion into the adult and young-adult (“up-target”) segment gained momentum in August 2024 with the success of “Heartsping: Teenieping of Love”, which attracted 1.24 million moviegoers. Its growing popularity among adult audiences led the characters to spread virally across memes, online communities, and new media platforms. Building on this momentum, SAMG Entertainment secured a number of high-profile commercial partnerships this year — including an MOU with SM Entertainment, collaboration pop-ups with Hyundai Motor Company, issuance of over 100,000 KB Kookmin Bank “Teen Up” cards, a sold-out Clio sun cushion, and exclusive Kia Tigers merchandise that quickly sold out.

More recently, global attention increased when BLACKPINK’s Lisa organically featured Teenieping-related content on her official social media channels, further boosting the IP’s international visibility and expanding its overseas fanbase.

Starting in the second half of 2025, SAMG Entertainment is broadening its proprietary “up-target” product lineup with initiatives such as the Heartsping Idol Project Blind Box, the Animal Heartsping series, and “Heartsping’s Laid-back Days” merchandise line. These in-house product lines mark a transition from collaboration-driven activities toward a model that simultaneously enhances brand value and profitability through proprietary IP development.

The company also announced plans to launch a brand store targeting Gen Z and global consumers later this year, as part of its long-term IP branding strategy.

A SAMG Entertainment spokesperson commented, “The expansion of our up-target segment is not a temporary reaction — it signals that adult demand for our IPs is structurally taking root. Starting with the film’s success and followed by a series of major brand collaborations, we are now moving beyond simple merchandise sales into full-scale IP-based brand development.” The spokesperson added, “With the upcoming brand store and new product lineups, we expect our IP brand value among adult consumers to strengthen even further.”