SINGAPORE (Aug 10): Spackman Entertainment Group, the Korean entertainment production groups, recorded a net profit of US$4.4 million ($6 million) in 1H17 compared to a net loss of US$3.5 million in 1H16.

Revenue increased 38% year-on-year to US$10.5 million for 1H17 mainly as a result of an increase of US$2.2 million from distribution of films and others, an increase of US$0.3 million from leasing equipment business of Frame Pictures Co. and an increase of US$0.3 million from production of films.

The increase in revenue from distribution of films and others was mainly due to the recognition of the share of profit for acting as the producer for Master of US$3.8 million and return on investment as a passive investor for Master of US$0.2 million for 1H17.

Other income went up by 46% year-on-year to US$3.3 million for 1H FY2017 mainly due to the gain of US$3.0 million on the partial disposal of the company’s associated company, Spackman Media Group Limited (SMGL), as part of the acquisition of 100% stake in Frame Pictures, partially offset by a decrease in loss on film borne by external investors of US$2.0 million.

The gain of US$3.0 million on disposal of 497,250 SMGL shares at US$6.8 per SMGL share, arising from the acquisition of Frame Pictures, was calculated based on the sales proceeds of US$3.4 million value in the disposed SMGL shares, subtracted by the carrying value of the disposed SMGL shares of US$0.4 million via equity method.

According to the Korean Film council, the South Korean film market reported a 3.4% increase in gross box office revenue to US$703.5 million and a 2.8% year-on-year increase in admissions to 97.3 million for the first half of 2017.

The Group’s upcoming film is manhunt thriller movie, Golden Slumber, starring Gang Dong‐won and Han Hyo-joo. The estimated total production budget for Golden Slumber is set at US$8.7 million.

Spackman Entertainment says the group is currently in discussions to join as an investor for an upcoming film Now I Will Meet You, which is set to star top-tier Korean actors Son Ye-jin and So Ji Sub, who are both managed by SMGL.

The group will also continue to seek more opportunities to collaborate with SMGL’s artists in creating and participating in quality content projects.

Presently, the group is reviewing future acquisition opportunities and intends to reshape its business model to diversify its revenue stream.

Shares in Spackman Entertainment closed 1 cent lower at 11 cents on Thursday.