Parasite Effect, CJ ENM Sales Increase by 14.5%

[Image source=Yonhap News]

[Asia Economy Reporter Koo Chae-eun] CJ ENM, which invested in and distributed the film Parasite, recorded sales of 3.7897 trillion KRW last year, a 14.5% increase compared to the previous year. Operating profit rose 9.5% to 269.4 billion KRW. In the fourth quarter of last year, sales amounted to 1.0141 trillion KRW, with operating profit of 42.7 billion KRW.

According to CJ ENM on the 13th, the film division achieved annual sales of 349.3 billion KRW and operating profit of 43.6 billion KRW, driven by box office hits such as Parasite, which won four awards including the Palme d'Or at Cannes and the Academy Award for Best Picture, as well as self-produced titles like Extreme Job and Bad Guys. This year, the company plans to continuously strengthen its content competitiveness and accelerate global business centered on the U.S. market.

The media division strengthened viewership and buzz with titles such as Crash Landing on You, Hotel Del Luna, and New Journey to the West 7, recording annual sales of 1.6784 trillion KRW and operating profit of 70.9 billion KRW. Despite a sluggish overall broadcast advertising market, both TV advertising and digital advertising sales increased by 8.5% and 22% respectively compared to the previous year, due to expanded mid-roll ad sales. In 2020, the division aims to grow its business by expanding seasonal and content offerings and strengthening mashups and digital original content to increase integrated TV and digital advertising.

The commerce division saw growth in both scale and profitability through strong sales of exclusive brand products such as A+G (Edge), Jang Michelle Basquiat, and G Studio, as well as restructuring low-profit businesses like some overseas subsidiaries and catalogs. As a result, sales rose 10.3% year-on-year to 1.4273 trillion KRW, and operating profit increased 20% to 149.2 billion KRW. This year, the division plans to further expand exclusive brand business and enhance channel synergy centered on mobile to improve profitability.

The music division recorded annual sales of 334.8 billion KRW and operating profit of 5.6 billion KRW. Although profitability was weak in 2019 due to increased investment in new artists, in 2020, CJ ENM plans to strengthen future business capabilities by expanding mid- to long-term global IP activities with artists such as Billie Lab and TOO.

This year, CJ ENM aims for sales of 3.8 trillion KRW and operating profit of 310 billion KRW based on ▲expanding global mega IPs across all divisions ▲strengthening competitiveness through securing proprietary brands and self-produced content ▲expanding digital distribution.

A CJ ENM official stated, “Despite the challenging market environment, CJ ENM focused on the intrinsic value of content to achieve steady performance growth and actively pursue global expansion,” adding, “This year, we will further strengthen the content HIT RATIO and focus on profit growth through expansion of exclusive brand business as well as global and digital businesses.”

This content was produced with the assistance of AI translation services.