FNC Entertainment Up 16.1 Billion Year-On-Year..100 billion hearts

*This content was translated by AI.

FNC Entertainment (173940, FNC Entertainment). Hereinafter, FNC) announced on the 27th that it recorded an operating performance of 102.4 billion won in consolidated sales in 2025 and a break-even point (BEP) level (operating loss of 200 million). Compared to the previous year, sales increased by 16.1 billion won, surpassing 100 billion won again for the first time in eight years since 2017. Operating profit improved by 4 billion won compared to last year, continuing the flow of strengthening profitability as well as sales growth.

Consolidated sales and operating profit in the fourth quarter were 35 billion won and 900 million won, respectively, continuing the operating profit surplus for three consecutive quarters from the second quarter. In the case of annual operating profit, it has improved profits of 3 to 5 billion won every year since 22.

However, net losses increased year-on-year, but this is due to the loss of valuation of convertible bonds (CB)-related derivatives due to rising stock prices, which is a loss on the books without actual cash outflows. It is an accounting treatment that occurred in the process of re-evaluating the fair value of the conversion right at the end of the term and is not directly related to business activities.

"The effects of selection, concentration, and improvement of business constitution, which have been steadily progressing since 2023, have been reflected in the performance every year to reach a break-even level, and are expected to enter a full-fledged profit segment in the future," said Kim Yoo-sik, CEO of FNC. "In the music business, we will continue to expand our domestic and global fandom, grow low-age artists, and strengthen core businesses such as albums, performances, and MD. The results of the drama production business will also be visible soon, and the actor management business will continue to strengthen profitability such as acting and fan meetings."

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*This content was translated by AI.