KOSDAQMedia & Entertainment089230

The E&M

₩1,835▼ 3.93%2026-10-02 close

Market Cap

₩73.2B

Turnover

₩400M

Volume

200,000 shares

Shares out.

39.4M

PER

—

PBR

—

EPS

-₩908

Dividend Yield

0.00%

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

Report overview

Weak Earnings, Cheongna Project Key Variable

Amid four straight years of revenue decline and widening cumulative losses, the progress of permits and funding for the Cheongna media-culture complex project remains the key variable shaping the company's trajectory.

1
Consolidated revenue fell for four straight years from KRW 46.6bn (2022) to KRW 12.3bn (2025), with both operating and net losses widening in 2025
2
Quarterly revenue recovered sequentially in 2026 to KRW 6.2bn (Q1) and KRW 7.3bn (Q2), with net income attributable to owners briefly turning positive in 2026Q2
3
The Cheongna media-culture complex (SOM:CITY) project has advanced foreign investment inflows (Hackman Capital LOI, a UAE investor's LOC) since being named preferred bidder in 2023, but administrative approvals including Ministry of Trade, Industry and Energy sign-off remain in progress
4
Frequent resale of convertible bonds and repeated third-party rights offerings have weakened the capital structure, alongside a growing accumulated deficit
5
The 2025 consolidation of new subsidiaries such as AGL Company and Vessel signaled a diversification attempt, but the core platform (Popcorn TV) continues to face competitive erosion

Business structure

THE E&M is a KOSDAQ-listed company centered on the one-person media (personal broadcasting) platform Popcorn TV, alongside an internet business segment, an MCN business supporting broadcasters, and an entertainment management business supporting actors and performers.

According to company disclosures, the firm operates an internet business developing and running one-person media platforms, an MCN business managing broadcasters active on platforms such as YouTube, and an entertainment management business supporting actors and other talent.

The internet segment led by Popcorn TV has historically accounted for the largest share of revenue, but intensifying competition among personal broadcasting platforms and user migration to global platforms such as YouTube and TikTok have reportedly caused a sustained decline in Popcorn TV's subscribers and revenue.

In response, the company expanded into one-person media management (IC Entertainment) and celebrity management (CL&Company), though these segments are also reported to have seen both revenue and profitability decline.

Notably, in fiscal 2025 the company acquired a stake in AGL Company and newly consolidated Vessel, bringing the total number of consolidated subsidiaries to seven in an apparent attempt to diversify its business portfolio.

Separately, the company is the lead operator of the Cheongna Media and Culture Complex (SOM:CITY) development project in Incheon's Cheongna International City, an approximately KRW 1.5 trillion undertaking to build studios, a media center, cultural attraction facilities, and residential units.

This project is largely a real-estate development undertaking distinct from the core media and entertainment content business, representing an attempt to extend the company's business structure from content platforms into infrastructure development.

In terms of competitive positioning, the personal broadcasting platform competes against large-scale players such as YouTube and Afreeca TV (SOOP), while the Cheongna studio development faces well-capitalized rivals such as the KT consortium that competed for the same project, leaving a persistent gap in financial capacity.

Earnings trend

Quarterly revenue · Operating profit

₩4.6B-₩1.8B25Q2₩4.3B-₩2.1B25Q3-₩2.9B25Q4₩6.2B-₩2.1B26Q1₩7.3B-₩4.1B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩46.6B-₩2.3B2022₩31.7B-₩7.7B2023₩22.2B-₩7.5B2024₩12.3B-₩8.6B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩4.6B	-₩1.8B	−40.3%
2025Q3	₩4.3B	-₩2.1B	−48.6%
2025Q4	—	-₩2.9B	—
2026Q1	₩6.2B	-₩2.1B	−34.6%
2026Q2	₩7.3B	-₩4.1B	−55.6%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩46.6B	-₩2.3B	-₩22.6B	−5.0%	−36.5%	68.4%
2023	₩31.7B	-₩7.7B	-₩33.6B	−24.3%	−115.0%	190.0%
2024	₩22.2B	-₩7.5B	-₩13.2B	−33.7%	−44.0%	158.0%
2025	₩12.3B	-₩8.6B	-₩19.9B	−69.5%	−90.3%	113.4%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-05

Earnings analysis

Consolidated revenue declined for four consecutive years, from KRW 46.6bn in 2022 to KRW 31.7bn (2023), KRW 22.2bn (2024), and KRW 12.3bn (2025), with the 2025 decline accelerating to 44.4% year-over-year.

Operating losses persisted for four straight years, widening from KRW -2.31bn (2022) to KRW -7.72bn (2023), KRW -7.47bn (2024), and KRW -8.58bn (2025), as fixed-cost burden intensified against shrinking revenue, pushing the operating margin from -5.0% in 2022 to -69.5% in 2025.

Net income attributable to owners posted large losses every year: KRW -22.60bn (2022), KRW -33.57bn (2023), KRW -13.25bn (2024), and KRW -19.90bn (2025), with the 2025 net loss expanding 50.2% year-over-year.

On a quarterly basis, net losses widened from KRW -3.82bn in 2025Q2 to KRW -3.92bn in 2025Q3 and KRW -8.40bn in 2025Q4, before deepening sharply to KRW -16.74bn in 2026Q1.

In 2026Q2, however, revenue rose to KRW 7.33bn from KRW 6.20bn the prior quarter, and net income attributable to owners briefly turned positive at KRW +2.23bn even as the operating loss widened further to KRW -4.07bn, suggesting the swing to net profit was driven by non-operating items rather than core business improvement.

Owners' equity fell from KRW 30.08bn in 2024 to KRW 22.03bn in 2025, and the debt ratio eased from 158.0% to 113.4% over the same period, though this reflects shifts in total equity composition, including non-controlling interests, rather than genuine balance-sheet strengthening.

Operating cash flow deteriorated from KRW +5.39bn in 2022 to KRW -1.62bn (2023), KRW -4.93bn (2024), and KRW -8.86bn (2025), indicating a persistent weakening in the core business's cash-generating capacity.

Industry analysis

The domestic one-person media and MCN industry continues to see shrinking room for small and mid-sized platforms amid the expanding influence of global platforms such as YouTube and TikTok and intensifying competition from large domestic platforms such as SOOP (formerly Afreeca TV).

Niche, adult-content-centered platforms like Popcorn TV are seen as more vulnerable to user attrition given limited content diversification.

By contrast, larger media and content companies have recently shown improving results; for instance, CJ ENM reported that despite a year-over-year revenue decline in its 2026 second-quarter results, operating profit rose on the back of TVING's swing to profitability and increased earnings at Studio Dragon.

This illustrates how the broader content and platform industry is improving profitability through economies of scale and stronger subscription-based revenue models, highlighting the scale gap relative to smaller platforms such as THE E&M.

Meanwhile, studio infrastructure development projects such as the Cheongna Media and Culture Complex align with policy support for expanding K-content production capacity, including the Incheon Free Economic Zone Authority's K-Content Land initiative, reflecting a genuine long-term industrial need for expanded domestic film production infrastructure.

However, that market already includes well-capitalized competitors such as CJ ENM (Studio Dragon) and conglomerate-affiliated studios, meaning new entrants require time to establish a foothold.

Outlook

The company's future path splits into two tracks: recovery in the core Popcorn TV, MCN, and management businesses, and progress in executing the Cheongna Media and Culture Complex (SOM:CITY) project.

On the core business side, revenue rose sequentially in the first and second quarters of 2026, though two quarters of recovery are not yet sufficient to conclude that the multi-year downtrend has reversed, and confirmation through subsequent quarterly results is needed.

For the Cheongna project, since being finally named preferred bidder in March 2023, the company signed a design services contract in 2024 (with Kunwon, Heerim, and Kunjeong, valued at roughly KRW 16.9bn), and legal risk was partly resolved when a court dismissed the KT consortium's suit challenging the selection in 2024.

In April 2025 the company received a letter of intent from U.S.-based Hackman Capital Partners, and in April 2026 it announced securing a KRW 30bn letter of commitment from a UAE-based investment institution, also citing the involvement of global studio operator Shadowbox Studios.

However, administrative steps remain outstanding, including signing a business agreement with the Incheon Free Economic Zone Authority and LH, and obtaining Ministry of Trade, Industry and Energy approval required for development within the free economic zone, meaning whether the letters of intent and commitment translate into actual fund disbursement and groundbreaking will require confirmation through subsequent disclosures.

Valuation

PER

—

PBR

—

ROE

-99.4%

EPS

-₩908

BPS

—

Dividend per share

₩0

Because net income attributable to owners has remained in cumulative loss even over the most recent four quarters, valuation metrics based on net income are difficult to compute for this company.

The price-to-book ratio appears to trade at a level reflecting a substantial premium to net assets relative to market capitalization, a dynamic compounded by the sharp reduction in owners' equity.

On dividends, no payout has been identifiable in recent fiscal years, making dividend-yield comparisons of limited relevance.

Looking at the multi-year earnings pattern, operating and net losses have persisted, with one instance of a net-income swing to profit in the second quarter of 2026; however, the operating loss widened over the same period, so whether this swing reflects a structural improvement in the core business requires confirmation through further quarterly results.

The history of frequent convertible bond issuance and resale, together with repeated third-party rights offerings, remains a structural variable related to potential share dilution.

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 2026-09-05

Bull factors

Progress in Foreign Investment for the Cheongna Project

The company stated it received a letter of intent from Hackman Capital Partners in April 2025 and a KRW 30bn letter of commitment from a UAE-based investment institution in April 2026.

Mention of potential involvement from global studio operator Shadowbox Studios suggests the funding structure through a project financing vehicle is becoming more concrete.

This represents some progress on external fundraising compared to the company's initial position as preferred bidder in 2022 amid controversy over its financial capacity.

Sequential Quarterly Revenue Recovery in H1 2026

Quarterly revenue, which had fallen to KRW 4.26bn in 2025Q3, rose for two consecutive quarters to KRW 6.20bn in 2026Q1 and KRW 7.33bn in 2026Q2. This marks a directional change relative to the four-year pattern of revenue decline.

Whether this recovery reflects genuine improvement in core business competitiveness or simply the effect of newly consolidated subsidiaries requires further confirmation.

Diversification Attempt via Subsidiary Consolidation

In fiscal 2025, the acquisition of a stake in AGL Company and the new consolidation of Vessel brought the total number of consolidated subsidiaries to seven. This can be interpreted as an attempt to secure new business areas beyond the existing content and platform-centered operations.

Bear factors

Four Straight Years of Revenue Decline and Core Platform Erosion

Consolidated revenue fell for four consecutive years from KRW 46.6bn in 2022 to KRW 12.3bn in 2025, with the decline actually accelerating to 44.4% in 2025.

Intensifying competition among personal broadcasting platforms and user migration to global platforms have been cited as causes, and expansion into management businesses reportedly saw both revenue and profitability decline as well.

Persistent and Widening Operating and Net Losses

Operating income posted losses for four consecutive years from 2022 to 2025, with the operating margin deteriorating from -5.0% in 2022 to -69.5% in 2025. Net income attributable to owners also posted large annual losses, with the 2025 net loss widening 50.2% year-over-year.

Operating cash outflow has also grown larger each year, indicating a structural, persistent weakening in the core business's cash-generating capacity.

Capital Structure Weakness from Frequent CB Resales and Rights Offerings

Over two months from August 2025, the company resold a total of KRW 6bn in treasury convertible bonds across four transactions, with cash and cash equivalents reported at KRW 1.8bn and accumulated deficit at KRW 110.2bn at the time.

A history of repeated third-party rights offerings and CB repricing remains a structural burden related to potential dilution of existing shareholders.

Risk factors

Liquidity and Capital Risk

The company has reportedly relied on CB resales and repeated rights offerings to fund operations and debt repayment in recent periods, with accumulated deficit confirmed to have exceeded KRW 100bn.

Given past reports (as of mid-2024) that current liabilities significantly exceeded current assets, it will be important to monitor changes in liquidity metrics in future financial disclosures.

Cheongna Project Execution Risk

Securing letters of intent and commitment does not guarantee actual fund disbursement, and administrative procedures including signing a business agreement and obtaining Ministry of Trade, Industry and Energy approval remain outstanding.

Given that objections and litigation over the consortium's financial capacity arose from the earliest stages of selection, the possibility of permit delays or changes to the funding plan cannot be ruled out.

Core Business Competitive Risk

In the personal broadcasting platform market, the growing influence of global platforms such as YouTube and TikTok and large domestic platforms is narrowing the space for small and mid-sized operators.

Given the nature of Popcorn TV's content, there are constraints on expanding the user base, so a resumption of the revenue decline trend cannot be ruled out.

What to watch next

Mid-November 2026 (around the Q3 report filing deadline)
Check the 2026 Q3 preliminary results disclosure to see whether the revenue recovery extends to a third consecutive quarter and whether the operating loss trend eases
During Q4 2026
Watch for follow-up disclosures on establishment of the project financing vehicle, signing of the business agreement with the Incheon Free Economic Zone Authority and LH, and Ministry of Trade, Industry and Energy approval for the Cheongna media-culture complex
During H2 2026, on an ongoing basis
Monitor whether the UAE investor's KRW 30bn letter of commitment translates into actual capital contribution to the project vehicle, and watch for any additional CB issuance, resale, or rights offering disclosures
Around March 2027 (annual report filing deadline)
Check the confirmed 2026 annual report to see whether full-year revenue, operating income, and net income reversed in line with the quarterly recovery trend, and how capital structure metrics evolved

Overall view

THE E&M experienced continued revenue decline and widening operating and net losses from 2022 through 2025, but showed a shift in the first half of 2026 with two consecutive quarters of revenue growth and a brief swing to positive net income attributable to owners in the second quarter.

However, the operating loss widened over the same period, so the sustainability of this net-income swing requires confirmation through further quarterly results.

The company's medium- to long-term direction appears to hinge largely on two factors: recovery in its core personal broadcasting and management businesses, and progress on permits and funding execution for the Cheongna media-culture complex project.

Foreign investment inflows (the Hackman Capital Partners letter of intent and the UAE investor's letter of commitment) can be viewed as progress, but administrative steps including the business agreement and Ministry of Trade, Industry and Energy approval remain outstanding, meaning execution will take time.

At the same time, a history of frequent CB resales, rights offerings, and a growing accumulated deficit continue to represent structural burdens on the capital structure. This report is intended for informational purposes only and does not include a buy or sell recommendation or a target price.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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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.