PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
With quarterly results swinging sharply depending on whether a drama is airing, the scheduled fall 2026 broadcast of SBS's 'Nine to Six' has become a key test of the company's earnings recovery.
FY2025 revenue fell 20.2% year over year to KRW 37.3 billion with an operating loss of KRW 1.5 billion, and a single quarter (Q4, KRW 35.6 billion) accounted for most of the year's revenue.
In H1 2026, revenue remained thin at KRW 0.35 billion in Q1 and KRW 0.39 billion in Q2 due to the absence of airing dramas.
In March 2026 the company signed a production supply contract for SBS's new drama 'Nine to Six' (starring Park Min-young, Yook Sung-jae, and Go Soo), a 12-episode series scheduled to air in H2 2026.
The debt ratio declined to 15.6% in 2025, improving financial stability, but operating cash flow turned negative for the year.
Industry-wide, reduced broadcaster drama slots and global OTT platforms' monopolization of IP are cited as structural constraints on production companies' profitability.
Samhwa Networks was established in 1991 and listed on KOSDAQ in 2001 as Korea's first independent drama production company.
Its core business is planning, producing, and selling dramas to broadcasters and global OTT platforms, and it has recently expanded into producing dramas with self-owned intellectual property and selling broadcasting rights.
Through subsidiary Studio Icon, the company is pursuing expansion of web novel and webtoon-based IP, broader global OTT collaboration, and increased format exports.
Its actor management business operates through subsidiary WS Entertainment, generating revenue from broadcast, performance, and music activities of affiliated actors, though this represents a small share of total revenue.
The largest asset on the company's balance sheet is its Sangam-dong headquarters building, completed in 2025. Revenue is tied to broadcasting rights contracts, meaning revenue tends to concentrate around the airing period of a given drama.
In March 2026, the company signed a production supply contract with Studio S for the new SBS drama 'Nine to Six,' a 12-episode series scheduled to air in the second half of 2026. Actors Park Min-young, Yook Sung-jae, and Go Soo have been confirmed for the cast.
In February 2026, the company decided on a share consolidation raising par value from KRW 200 to KRW 500, reducing total shares outstanding from about 43.17 million to about 17.27 million.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩600M | -₩1.3B | −206.5% |
| 2025Q3 | ₩400M | -₩1.7B | −451.3% |
| 2025Q4 | ₩35.6B | ₩2.8B | 7.9% |
| 2026Q1 | ₩400M | -₩1.4B | −383.5% |
| 2026Q2 | ₩400M | -₩1.4B | −352.0% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩82.3B | ₩10.8B | ₩13.8B | 13.1% | 23.9% | 43.9% |
| 2023 | ₩62.4B | -₩1.8B | -₩1.2B | −2.9% | −2.2% | 48.3% |
| 2024 | ₩46.7B | ₩700M | ₩1.9B | 1.4% | 3.2% | 16.5% |
| 2025 | ₩37.3B | -₩1.5B | -₩900M | −4.2% | −1.5% | 15.6% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Consolidated revenue declined for four consecutive years, from KRW 82.3 billion in 2022 to KRW 62.4 billion in 2023, KRW 46.7 billion in 2024, and KRW 37.3 billion in 2025.
Operating profit swung from a KRW 10.8 billion gain in 2022 to a KRW 1.8 billion loss in 2023, briefly recovered to a KRW 0.67 billion gain in 2024, then reverted to a KRW 1.5 billion loss in 2025.
Net income attributable to owners followed a similar pattern, from KRW 13.8 billion in 2022 to a loss of KRW 1.2 billion in 2023, a gain of KRW 1.9 billion in 2024, and a loss of KRW 0.87 billion in 2025.
On a quarterly basis, Q4 2025 revenue surged to KRW 35.6 billion, producing an operating profit of KRW 2.8 billion and net income of KRW 3.2 billion, effectively generating most of the entire year's results in a single quarter.
By contrast, Q2 2025 (revenue of KRW 0.62 billion, operating loss of KRW 1.3 billion) and Q3 2025 (revenue of KRW 0.38 billion, operating loss of KRW 1.7 billion) saw almost no revenue due to the absence of airing dramas, driving cumulative losses.
This pattern repeated in 2026, with Q1 revenue of KRW 0.35 billion and an operating loss of KRW 1.4 billion, followed by Q2 revenue of KRW 0.39 billion and an operating loss of KRW 1.4 billion, keeping losses running through the first half.
This reflects the typical characteristic of a contract-based production revenue model tied to broadcaster scheduling, where revenue and profit concentrate in the quarter a drama airs while other quarters remain largely empty.
The debt ratio rose from 43.9% in 2022 to 48.3% in 2023, then fell sharply to 16.5% in 2024 and 15.6% in 2025, indicating an improved balance sheet structure.
Operating cash flow moved from an inflow of KRW 15.4 billion in 2023 to an inflow of KRW 6.6 billion in 2024, before turning to a net outflow of KRW 1.2 billion in 2025.
The domestic drama production industry is undergoing structural adjustment as broadcaster scheduling cuts, rising production costs, and global OTT platforms' monopoly over IP converge.
Amid the 2024-2025 industry downturn, small and mid-sized production companies have generally been limited to producing one to two dramas per year.
Hankyung reported that because broadcasters and global OTT companies hold exclusive scheduling rights, the gross profit margin ceiling that production companies can capture is confined to a single digit to around 10%.
The same report noted that leading domestic drama producers are recording price-to-book ratios at historic lows. On the other hand, global demand for Korean content remains solid, with the Korea Creative Content Agency noting that Korean dramas accounted for roughly 14.6% of Netflix viewing time in Korea in H1 2025.
However, a researcher at the Korea IR Service Council pointed out that large producers need to build recurring revenue by monetizing back catalogs, pursuing remakes, exporting formats, and engaging in global co-productions, highlighting a gap between demand and monetization.
The industry views the growing possibility of easing restrictions on Chinese market access as a positive factor, with close attention on a potential Korea-China summit around the October APEC meeting.
There are also cases like First Man Studio, producer of the Squid Game series, growing through the downturn on the strength of production capability, showing that industry weakness does not uniformly dictate individual company outcomes.
The company's near-term earnings trajectory hinges significantly on whether the new SBS drama 'Nine to Six' begins airing in H2 2026 as planned. The series stars Park Min-young, Yook Sung-jae, and Go Soo, spans 12 episodes, and the contract runs through January 15, 2027.
Some brokerage analysis from around April 2026 estimated the company's annual breakeven point at roughly two to three dramas aired, suggesting that if one or more additional dramas beyond 'Nine to Six' materialize, the scale of earnings improvement could be larger.
The company has stated it is strengthening its position as a content company through expanded global OTT collaboration, growth of web novel and webtoon-based IP, and increased format exports.
However, commentary tied to Q1 2026 results noted that drama segment revenue declined amid difficult market conditions including rising production costs, reduced content investment, and intensifying global competition, though cost reductions modestly narrowed the operating loss.
Dividends have not been paid in recent years, suggesting financial resources are being directed toward content production and maintenance of fixed assets such as the headquarters building rather than shareholder returns.
Should a Korea-China summit take place around the October APEC meeting, heightened expectations for easing restrictions on the Chinese market could influence sentiment across the industry.
From the third quarter onward, quarterly filings are expected to clarify the timing and scale of revenue recognition from the 'Nine to Six' broadcasting rights.
The share price relative to net asset value, when compared against the company's most recent reported equity base, provides one reference point for gauging market expectations.
Because results are concentrated in specific quarters, annual and quarterly earnings volatility is high, which warrants care when interpreting valuation metrics.
Combined results over the most recent four quarters (Q3 2025 through Q2 2026) remain in net loss territory, meaning recovery in earnings power will likely depend heavily on the performance of the drama scheduled to air in the second half.
With no dividends being paid, financial resources appear to be allocated toward content production and asset maintenance rather than shareholder returns.
Given reports that price-to-book ratios across the broader domestic drama production sector have fallen to historically low levels, the multiple level of any individual stock is best viewed alongside sector-wide trends.
Because these metrics change daily with market conditions, investors are encouraged to check the latest disclosures and quotes alongside this analysis.
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 2026-08-23
The 'Nine to Six' production supply contract signed in March 2026 secured an airing title to fill the second-half revenue gap. The contract covers 12 episodes and runs through January 15, 2027. The high-profile cast of Park Min-young, Yook Sung-jae, and Go Soo is viewed as a favorable factor for viewership.
Some brokerage analysis has suggested that if one or more additional dramas materialize, earnings improvement could exceed the annual breakeven threshold.
The company has stated it is expanding its business structure toward producing dramas with self-owned IP and selling broadcasting rights. Through subsidiary Studio Icon, it is pursuing expansion of web novel and webtoon-based IP and increased format exports. This is viewed as a structure that could create additional revenue streams beyond initial broadcasting income.
The debt ratio declined from 48.3% in 2023 to 16.5% in 2024 and 15.6% in 2025, easing the financial burden. The largest share of the company's assets is its Sangam-dong headquarters building, completed in 2025, providing a tangible-asset-based stability.
According to one report as of late March 2026, the company's cash and cash equivalents stood at about KRW 15 billion, roughly 35% of its market capitalization at that time.
Q4 2025 revenue of KRW 35.6 billion accounted for the vast majority of the annual result, while other quarters generated almost no revenue. This pattern repeated in H1 2026, with revenue of just KRW 0.35 billion in Q1 and KRW 0.39 billion in Q2. In quarters without an airing title, fixed costs continue to drive operating losses.
As broadcasters cut drama slots due to production cost burdens, the number of dramas produced annually by small and mid-sized companies has shrunk to one or two. Hankyung reported that the gross margin ceiling production companies can capture is confined to a single digit to around 10%.
Revenue itself fell by more than half over four years, from KRW 82.3 billion in 2022 to KRW 37.3 billion in 2025.
One brokerage analysis, as of around April 2026, noted that the company's revenue structure depends on contract production for broadcasters, limiting additional revenue paths after the initial airing income. With a relatively low share of self-owned IP, improving negotiating leverage is not straightforward.
The company itself has disclosed that contract terms may change depending on production and scheduling timelines.
The company has disclosed that contract end dates may change depending on production and scheduling timelines. A delay or cancellation of a single drama's broadcast can materially affect that quarter's results. In practice, revenue was nearly nonexistent in Q2-Q3 2025 due to the absence of an airing title.
Revenue is tied to broadcasting rights contract terms and is recognized sequentially over the airing period. This structurally embeds volatility, with profits concentrated in specific quarters while losses continue in others. If the number of dramas aired falls short of the annual breakeven level, annual losses could recur.
Rising production costs and global OTT platforms' exclusive IP contract structures are cited as constraints on profitability across the industry. If broadcasters continue cutting drama slots, the order opportunities available to small and mid-sized producers could shrink further. Amid intensifying industry competition, competition to secure new IP could also add to cost burdens.
Confirm whether the new SBS drama 'Nine to Six' begins airing as planned, its viewership performance, and the resulting timing of broadcasting rights revenue recognition.
Watch for a potential Korea-China summit and any signals on easing restrictions on the Chinese market, which could affect expectations for content exports to China.
Check the Q3 2026 earnings disclosure to see whether the second-half airing title is contributing to revenue and the direction of profit or loss.
Confirm whether recognition of broadcasting rights revenue is completed by the contract expiration date and whether any contract term changes are disclosed.
Monitor for disclosures of additional drama production contracts, as whether two or more dramas air annually is a key variable for reaching breakeven.
Samhwa Networks is a drama production company whose quarterly results swing sharply depending on whether a drama is airing, with revenue and profit concentrating around airing periods as seen in Q4 2025.
Annual revenue declined continuously from 2022 through 2025, and operating profit alternated between gains and losses under industry headwinds.
In H1 2026, revenue again remained thin due to the absence of an airing title, and whether the SBS drama 'Nine to Six' airs as planned in the second half is identified as the key variable for future results.
On the balance sheet side, stability has improved with a lower debt ratio, but operating cash flow turned negative in 2025, warranting attention to cash generation.
Industry-wide, reduced broadcaster programming slots and OTT platforms' monopolization of IP continue to constrain production companies' profitability, so any individual company's recovery should be viewed alongside broader industry trends.
The shift toward a business model built on self-owned IP is presented as a direction for long-term revenue diversification, though its contribution to results remains limited at this stage.
Readers may wish to track the performance of the second-half airing title, whether additional dramas are scheduled, and the Q3 earnings disclosure to assess the company's earnings recovery trajectory.
Report written 2026-09-05 · Data as of 2026-09-04
This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.