FNC Entertainment Surpasses $1 Billion in Revenue for the First Time in Eight Years

FNC Entertainment (173940, FNC Entertainment) announced on the 27th that it achieved a consolidated revenue of 102.4 billion KRW (approximately $1 billion) and an operating loss of 200 million KRW for 2025, reaching the break-even point. This marks an increase of 16.1 billion KRW in revenue compared to the previous year, surpassing the 1 trillion KRW mark for the first time in eight years since 2017. The operating profit improved by 4 billion KRW from last year, indicating not only revenue growth but also enhanced profitability.

In the fourth quarter, the consolidated revenue and operating profit were 35 billion KRW and 900 million KRW, respectively, maintaining a positive operating profit for three consecutive quarters since the second quarter. On an annual basis, the operating profit has improved by 3 to 5 billion KRW each year since 2022.

However, the net loss for the period increased compared to the previous year due to derivative valuation losses related to convertible bonds (CB) resulting from stock price increases. This is a book loss with no actual cash outflow, arising from the accounting process of re-evaluating the fair value of conversion rights at the end of the period, and is not directly related to operating activities.

Yoo-sik Kim, CEO of FNC, stated, "The effects of our ongoing strategy of selection and concentration, as well as business structure improvement since 2023, are reflected in our annual performance, reaching the break-even point. We expect to enter a full-fledged profit phase moving forward." He added, "In the music business, we will continue to expand our domestic and global fan base, grow our young artists, and strengthen core businesses such as albums, concerts, and merchandise. The results of our drama production business will soon become visible, and the actor management business will continue to enhance profitability through acting and fan meetings."

Reported by Ji-won Kim, TenAsia one@tenasia.co.kr