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

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.

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Mickey is a writer and digital content creator based in Manila. He is a co-founder of ZAVI App and editor of the small business blog IndieMickey. He has also been bitten by the K-Pop fashion bug - follow him on Instagram @mickjami.

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Cube Entertainment
CLC

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