1. KNN Q2 Earnings Analysis: What Caused the Earnings Shock?

KNN’s Q2 2025 consolidated revenue was 16.1 billion won, operating profit was 500 million won, and net income was 2.2 billion won, all decreasing year-over-year. The main causes of this poor performance are the overall downturn in the broadcasting advertising market and intensified competition due to the growth of new media such as OTT.

  • Revenue Decline: Revenue decreased by 8.3% year-over-year due to the shrinking broadcasting advertising market.
  • Profitability Deterioration: Operating profit margin continued to decline.

2. KNN Stock Forecast: Is a Rebound Possible?

KNN’s stock price is likely to be affected by the poor earnings in the short term. However, in the medium to long term, the possibility of a rebound exists depending on the performance of new businesses and the company’s response to changes in the broadcasting market.

  • Positive Factors:
    • Investments in new businesses such as information and communication construction
    • Solid financial health and 24 consecutive years of dividend policy
  • Negative Factors:
    • Possibility of continued downturn in the broadcasting advertising market
    • Uncertainty of new businesses

3. KNN Investment Strategy: A Cautious Approach is Necessary

A cautious approach is necessary when investing in KNN. Investors should consider the long-term growth potential rather than short-term stock price fluctuations. A dollar-cost averaging strategy can be considered given the valuation attractiveness and growth potential, but investors should be aware of the investment risks and focus on risk management. KNN’s future stock price is expected to be significantly affected by the performance of new businesses and the recovery of the broadcasting advertising market.