DS Securities said on the 26th that performance at subsidiary SLL is expected to continue improving, centered on drama and variety shows, for Contentree JoongAng. It maintained its "Buy" investment rating and raised its target price to 16,000 won from 12,000 won. Contentree JoongAng's closing price in the previous session was 8,860 won.
Jang Ji-hye, an analyst at DS Securities, said of Contentree JoongAng's third-quarter results, "In the broadcasting institutional sector, the number of aired episodes increased as JTBC drama production resumed, and the distribution on OTT led to improved performance." She added, "The theater institutional sector returned to profit thanks to the success of Hollywood films and animated films, which have a high share of screenings in premium formats."
On a consolidation basis, Contentree JoongAng's third-quarter sales this year were 278.7 billion won and operating profit was 11.4 billion won. Compared with a year earlier, sales rose 22%, and operating profit swung to a profit.
Jang said, "SLL's performance improvement will continue." Jang analyzed, "For drama, it recoups expense by leveraging content on its own platform, and performance growth is expected by releasing content on OTT and other channels." Jang added, "In the overseas institutional sector, Wiip has confirmed it will release five or more titles on OTT in 2026, and top-line growth and profit-and-loss improvement are expected."
The efficiency gains in the theater business were also cited as a reason for optimism for fourth-quarter results. Jang said, "Amid stagnant growth in the domestic box office, theaters are expected to narrow losses by reducing fixed costs," and added, "If the merger of Lotte Cinema and Megabox proceeds, performance improvement is expected from business structure reorganization."