RE: next week looking good26 Feb 2023 11:26
Frankfurt was a disappointment financially. Shareholders were dreaming of profits into the 7 figures, with streaming revenue being a potentially big win, but it never came to pass. They didn't have the rights for Live Streaming and the 2nd day didn't sell out. It was their first festival, some slack should be cut.
Lessons learnt is demonstrated in this new license model. LVCG also hold the rights to the Live Streaming in Japan, which is the biggest kpop market outside of Korea. With the license fee of $1m, a share of the merch + Streaming, it seems very clear to me that Japan will be very profitable. The other gigs I see smaller numbers but still profitable, with the aim in the background to be building the brand. People can argue otherwise and I'm all ears to any logical debate.
They have deserved some stick, namely this short term loan facility and not posting numbers / profit. But it looks to me like lessons were learnt from Frankfurt and there are clearly some big differences in how LVCG will generate revenue from these kpop festivals, compared to Frankfurt. They are partnered with SBS and KBS, so the big acts are guaranteed.
The kpop division is shaping up to be everything shareholders would hope. We just have to watch it play out and wait for the numbers. The only risk I see is Director greed but even despite if that does happen, I can still the group being comfortably profitable this year. Also I do think this criticism is possibly overblown, when you look at the facts. The StART acquisition for example. In saying that, expenses would be one area of concern. I doubt he flies economy anywhere, nor scrimps on any hotel stays.
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