THE BLUE BOX // UNITED CUBE OFFICIAL THREAD

[ShoogurrKween]

CUBE Entertainment Reportedly Suffers $4.8 Million Loss In 1st Half Of 2015

 

By Mickey Jamias | September 29, 2015 10:22 AM EDT

 

 

CUBE Entertainment has released the company's results for the first half of 2015, and posted a loss of 5.8 billion KRW or roughly $4.8 million USD, reports Koreaboo.

 

Observers were alarmed at the loss, which CUBE Entertainment partly attributed to their recent acquisition that led to a spike in costs relative to their revenues.

 

"It is because when we were acquiring a company, the cost of the acquisition was simply categorized as cost, in the first half of the year we were able to show a margin of 2.3 billion won but after the second acquisition, the margin increased to 3.5 billion," a representative from CUBE Entertainment reportedly said.

 

CUBE Entertainment says the acquisitions are part of their strategy to become a global entertainment company.

 

Still, despite the explanation of where the loss came from, some fans could not help but also put some blame on the costly promotions and comeback preparations made during the first half of the year, including those for CLC, BEAST and BTOB, A-Pink and 4Minute's HyunA.

 

In particular, rookie girl group CLC has received the brunt of the criticism.

 

"CUBE is in deficit for 5.8 billion won! The reason is because of CLC. They released three albums with no results," claimed one fan, according to Koreaboo.

 

There has been greater scrutiny over CUBE Entertainment's profit performance ever since the entertainment label became a publicly listed company on the Korea Exchange in April, joining the likes of other big agencies such as YG Entertainment, SM Entertainment, FNC Entertainment and JYP Entertainment.

 

http://www.kpopstarz.com/articles/244296/20150929/cube-entertainment-clc.htm

 

What is this? Is it serious?

This article is trash and totally misconstruing numbers to smear CLC and Cube. Cube recently expanded and went public which was a large investment that won't see returns right away. Its honestly just a matter of business that this author completely ignored. In order to grow, a company must expand;  and in order to expand a company must spend money. I'm sure there are a million other deals that Cube has made that we don't know about and we can't really know exactly whats going on without looking at their financial statements. Regardless, return on investment takes time. Not surprisingly, knetz have zero understanding of how business works and I can't believe this article writer quoted a "fan" as fact.   

 .

 

In short: it's not CLC's fault that Cube is in the negatives.

Edited September 30, 2015 by ShoogurrKween

[ShoogurrKween]

praying that because Beast and Btob are going too that this concert wont get cancelled 

[ShoogurrKween]