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Spackman Q2 loss widens to US$1.5m on lower film production revenue
CATALIST-LISTED Spackman Entertainment Group's second-quarter net loss widened to US$1.5 million, or 0.22 US cent per share, as it recognised less revenue from film production, the South Korea-based film and TV company announced late Tuesday.
The company had reported a net loss of US$212,000 for the year-ago period. For the six months ended June 30, Spackman incurred a net loss of US$1.2 million, or 0.18 US cent per share, from a US$4.6 million profit a year ago.
Revenue fell 32 per cent to US$1.7 million in the second quarter. Spackman recorded less revenue from its Sovereign Default project on a percentage-of-completion basis in the latest quarter than it had a year earlier from its Golden Slumber project, which led film production revenue to fall to US$0.22 million from US$1.19 million.
Cost of sales declined to US$0.84 million from a year-ago US$1.23 million, largely on lower production costs incurred during the period for Sovereign Default. But costs from distribution of films and others rose to US$0.37 million from a year-ago US$0.04 million due to the copyright fee of The Outlaws and other films.
Sovereign Default, which stars top Korean actors Yoo Ah-in and Kim Hye-soo, is set to open in the second half of 2018, Spackman said. The company also has interests in at least five other films scheduled to be released between the second half of 2018 and 2020.