PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩330 per share · Prices as of the 2026-10-02 close
SBS returned to operating profit in 2025 but owner net income fell sharply, and quarterly results have swung widely into 2026 as an advertising deregulation takes effect in October.
Consolidated operating profit turned positive at KRW 18.2 billion in 2025 after a prior-year loss, but owner net income fell sharply to KRW 8.0 billion.
After a KRW 17.6 billion operating loss in Q1 2026, the company rebounded to KRW 7.8 billion operating profit and KRW 6.6 billion owner net income in Q2 2026.
The broadcasting regulator adopted a Broadcasting Act enforcement decree raising the daily ad quota from 17% to 20% and easing mid-program ad rules, set to take effect in October.
SBS exited Wavve in September 2025 and instead signed a six-year content supply partnership with Netflix, planning to simultaneously release some new dramas globally.
SBS M&C secured a five-year renewal of its broadcasting ad sales agency license, preserving its advertising sales infrastructure.
SBS is a media group built on terrestrial TV and radio broadcasting, operating advertising, content production and distribution, and cultural business segments.
Key subsidiaries include Studio S, which oversees drama production, along with SBS Medianet and Studio Prism, which handle advertising, media representation and new-media operations.
Studio S was formed by integrating the drama division with the former SBS Content Hub and focuses on producing and distributing drama IP separately from variety and general entertainment, with ambitions to grow into a global studio.
The advertising business operates through SBS M&C, which acts as the sales agency for terrestrial broadcast advertising and recently secured a five-year renewal of its operating license from the broadcasting regulator.
The content segment, beyond terrestrial broadcast slots and distribution via IPTV, cable and satellite, has been restructured around a partnership under which SBS supplies new and library dramas, variety and general programming to Netflix starting in 2026.
Conversely, SBS ended its real-time and VOD content supply to Wavve, the joint OTT platform of the three terrestrial broadcasters, as of September 2025. The competitive landscape spans not only fellow terrestrial broadcasters KBS and MBC but also CJ ENM's Tving and global OTT players such as Netflix.
The cultural business segment generates supplementary revenue through large-scale events such as concerts and year-end music award shows organized by SBS-affiliated advertising units.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩268.2B | ₩7B | 2.6% |
| 2025Q3 | ₩239.2B | ₩13.1B | 5.5% |
| 2025Q4 | ₩294.7B | ₩5B | 1.7% |
| 2026Q1 | ₩190.4B | -₩17.6B | −9.3% |
| 2026Q2 | ₩285.4B | ₩7.8B | 2.7% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.2T | ₩185.6B | ₩152.5B | 15.8% | 18.6% | 61.2% |
| 2023 | ₩996.8B | ₩58.3B | ₩46.3B | 5.9% | 5.3% | 52.8% |
| 2024 | ₩1T | -₩19.2B | ₩33.8B | −1.8% | 3.7% | 66.8% |
| 2025 | ₩1T | ₩18.2B | ₩8B | 1.8% | 0.6% | 57.4% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21
SBS's annual results peaked in 2022 with revenue of KRW 1.1738 trillion and operating profit of KRW 185.6 billion, an operating margin of 15.8%, before entering a clear downtrend. In 2023, revenue fell to KRW 996.8 billion and operating profit contracted sharply to KRW 58.3 billion (5.9% margin).
In 2024, despite revenue of KRW 1.0467 trillion, the company swung to an operating loss of KRW 19.2 billion (-1.8% margin). Owner net income in 2024 stood at KRW 33.8 billion, lower than 2023's KRW 46.3 billion but still positive despite the operating loss, suggesting a meaningful contribution from non-operating items.
In 2025, revenue was KRW 1.0085 trillion and operating profit returned to KRW 18.2 billion (1.8% margin), yet owner net income shrank further to KRW 8.0 billion, indicating the quality of the earnings recovery remains limited.
By quarter, Q3 2025 was relatively solid with KRW 13.1 billion operating profit and KRW 10.4 billion owner net income, but Q4 2025 saw operating profit fall to KRW 5.0 billion and a net loss of KRW 1.1 billion even as revenue rose to KRW 294.7 billion.
Q1 2026 revenue dropped sharply to KRW 190.4 billion, producing an operating loss of KRW 17.6 billion and a net loss of KRW 13.9 billion, the weakest quarter in the recent window, before Q2 2026 rebounded to KRW 285.4 billion in revenue, KRW 7.8 billion operating profit and KRW 6.6 billion owner net income.
This wide quarterly swing appears to reflect a combination of advertising seasonality, variation in the content slate, and structural revenue shifts following the Wavve exit.
South Korea's overall advertising market grew 44.2% from KRW 11.7906 trillion in 2015 to KRW 17.2087 trillion in 2024, but broadcast advertising revenue over the same period fell 27.6% from KRW 4.464 trillion to KRW 3.2334 trillion, with terrestrial broadcast advertising alone plunging roughly 56% from about KRW 1.9 trillion to about KRW 800 billion.
Online advertising, by contrast, roughly tripled from KRW 3.4278 trillion to KRW 10.1358 trillion over the same span, shifting the center of gravity toward digital.
Against this backdrop, the broadcasting regulator adopted an enforcement decree on August 12, 2026 that raises the daily advertising quota from 17% to 20% of a channel's daily broadcast time and shortens the minimum program length eligible for mid-program ads from 45 to 30 minutes, with implementation set for October.
The regulator estimated the change would generate roughly KRW 50 billion in additional industry revenue, but the broadcasting association, whose members include the terrestrial broadcasters, expressed disappointment that the reform fell short of a full daily-quota system or complete freedom in mid-ad placement.
In the OTT competitive landscape, amid ongoing merger discussions between Tving and Wavve led by SK Square and CJ ENM, SBS's exit from Wavve in favor of a Netflix partnership has weakened Wavve's terrestrial-content exclusivity.
MBC content has also begun migrating toward Tving, signaling that the terrestrial broadcasters' joint OTT structure itself is being reshaped.
Ultimately, terrestrial broadcasters face a common challenge of diversifying revenue through IP distribution, overseas partnerships and AI adoption amid the structural erosion of the traditional advertising model.
The most concretely trackable variable is the October implementation of the broadcast advertising deregulation. How much of the expanded daily quota and eased mid-program ad rules translates into actual advertising revenue will be a key focus for coming results.
On the content side, under the six-year Netflix partnership, some new dramas are slated for simultaneous global release in the second half of 2026, which could contribute to license revenue and a more diversified IP distribution channel mix.
In his 2026 New Year address, CEO Bang Moon-shin set 'AI First' and 'content leadership' as management keywords, stating that an AI transition roadmap spanning planning, production, distribution, and copyright and data management would be reflected in each division and subsidiary's evaluation metrics.
SBS M&C secured a five-year renewal of its broadcasting ad sales agency license, ensuring stability in its advertising sales channel, though the renewal came with conditions including allocating at least 3% of gross profit to support the development of the broadcasting and advertising industry.
Still, how much Netflix supply revenue offsets the loss of domestic OTT channel revenue from the Wavve exit, and how much content production cost pressure slows the pace of profit improvement, are matters that will need to be confirmed through upcoming quarterly results.
SBS shares appear to trade at a substantial discount to net asset value.
At the same time, the earnings multiple calculated from the trailing four quarters has expanded well above its historical trading range, driven by the sharp contraction in owner net income rather than any rise in the share price itself—the multiple has been pushed up by weak recent quarterly profit, particularly the Q1 2026 net loss, which lowered the earnings denominator.
On the dividend side, per-share cash dividends have continued even after the return to operating profit, but given the reduced scale of earnings, the sustainability of the payout will likely hinge on the pace of any future profit recovery.
Ultimately, valuation metrics here are highly sensitive to the direction of earnings—from loss to profit and back to a smaller profit—so the continuity of quarterly earnings recovery matters more than a simple multiple comparison.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-21
The Broadcasting Act enforcement decree taking effect in October raises the daily ad quota from 17% to 20% and broadens eligibility for mid-program ads. The regulator estimated the resulting revenue uplift at roughly KRW 50 billion.
Given the high fixed-cost structure of broadcasting, even a modest rise in ad revenue could carry significant operating leverage.
In place of Wavve, SBS signed a six-year content supply deal with Netflix covering popular programs such as 'Running Man' and 'Unanswered Questions' as well as new dramas. Some new titles are slated for simultaneous global release in the second half of 2026, which could expand license revenue and global exposure. This can also be read as a structural shift reducing reliance on the domestic advertising market.
SBS M&C secured a five-year renewal of its broadcasting ad sales agency license, confirming continuity of its advertising sales infrastructure. It also scored above the renewal threshold in an external review committee's evaluation. This suggests the channel through which deregulation benefits could flow into actual revenue remains intact.
Terrestrial advertising revenue plunged roughly 56% from about KRW 1.9 trillion in 2015 to about KRW 800 billion in 2024. Over the same period, the overall ad market grew 44.2% and online advertising roughly tripled, reflecting a structural shift in ad spending. It cannot be ruled out that the current deregulation merely cushions rather than reverses this long-term trend.
Owner net income swung from KRW 10.4 billion in Q3 2025 to a KRW 1.1 billion loss in Q4 2025, to a KRW 13.9 billion loss in Q1 2026, before rebounding to KRW 6.6 billion in Q2 2026. This volatility reflects a business structure highly sensitive to the content slate and advertising seasonality. Whether the return to profitability proves durable will require confirmation over additional quarters.
SBS ended its real-time and VOD content supply to Wavve as of September 2025. While this may be largely substituted by Netflix-related revenue, the restructuring of domestic OTT equity value and related revenue could produce a temporary revenue gap or swings in equity-method gains. The still-unfinalized Tving-Wavve merger structure adds a further layer of uncertainty.
The Broadcasting Act enforcement decree slated for October implementation must still pass remaining administrative steps including Cabinet resolution and promulgation.
The broadcasting association has already stated the reform falls short of meaningfully activating the market, raising the possibility that the actual revenue contribution proves more limited than expected.
Following the Wavve exit, SBS's global distribution structure has become more dependent on a single platform, Netflix. Any future changes in contract renewal terms or Netflix's Korean content investment strategy could directly affect SBS's license revenue.
Broadcast advertising revenue is sensitive to domestic consumption trends and corporate marketing budget flows.
The sharp deterioration in Q1 2026 results can be read as a combination of seasonal ad softness and broader economic slowdown concerns, meaning earnings volatility could resurface depending on future economic conditions.
Confirm whether the Broadcasting Act enforcement decree (20% daily ad quota, eased mid-ad rules) is actually implemented and observe the initial advertising revenue response.
Check the Q3 2026 earnings disclosure to see whether the Q2 rebound continues and advertising revenue recovery persists.
Track the timing and initial reception of new dramas released simultaneously worldwide under the Netflix partnership, and whether related license revenue is recognized.
Monitor progress in the Tving-Wavve merger discussions and any resulting changes in SBS's domestic OTT content supply strategy.
SBS returned to operating profit in 2025 and showed further earnings recovery in Q2 2026, but quarterly results remain highly volatile, as illustrated by the large Q1 loss.
The advertising deregulation set to take effect in October and the IP distribution diversification through the Netflix partnership point to potential structural improvement, while the long-term contraction of the terrestrial advertising market and the domestic OTT revenue restructuring following the Wavve exit remain ongoing challenges.
The gap between the share price relative to net asset value and the earnings multiple largely reflects the recent contraction in profit scale, making it important to watch whether the direction of earnings improves again.
The actual effect of the regulatory implementation, Q3 results, and the performance of Netflix-bound content are likely to be key evidence going forward. Continued confirmation of official disclosures and subsequent quarterly results is advisable before drawing conclusions.
Report written 2026-09-05 · Data as of 2026-09-04
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