CJ ENM Reports Operating Profit of 93.6 Billion KRW in Q1, Up 135.7% YoY (Comprehensive)

[Asia Economy Reporter Lim Chun-han] CJ ENM announced on the 6th that its consolidated operating profit for the first quarter of this year was tentatively estimated at 93.6 billion KRW, a 135.7% increase compared to the same period last year. Sales amounted to 791.9 billion KRW, a 2.3% decrease compared to the same period last year. Net profit increased by 168.6% to 81 billion KRW. The operating profit is the largest quarterly figure in history. The strong performance was driven by TV advertising revenue based on content competitiveness and high growth in digital-based sales such as TVING.

The media division recorded sales of 386.2 billion KRW and an operating profit of 53.8 billion KRW, a 1283.6% increase compared to the same period last year, achieving the highest operating profit margin ever. In the first quarter, TV advertising revenue increased by 24.5% year-on-year, thanks to highly popular content such as the drama Vincenzo and the variety show Youn's Stay. Additionally, the launch of TVING original content like Girls' High School Mystery Club and strategic collaborations with JTBC and Naver contributed to a 29.3% increase in TVING paid subscribers compared to the fourth quarter of the previous year, driving high growth in digital sales.

The commerce division recorded sales of 330.8 billion KRW, operating profit of 33.7 billion KRW, and transaction volume of 983.2 billion KRW. Although overall sales decreased compared to the same period last year due to reduced demand in fashion, beauty, and home appliances, digital and T-commerce transaction volumes continued high growth with increases of 9.3% and 20.2% year-on-year, respectively. The digital share of total transaction volume exceeded half again at 53.2%, and the share of proprietary brands such as Secret and Atssential accounted for 10.2%.

The music division posted sales of 52.2 billion KRW, a 30.9% increase year-on-year, and an operating profit of 6.2 billion KRW. The successful completion of the online K-culture festival KCON:TACT 3 and the expansion of online concerts by in-house artists including global artist JO1 led to concert sales increasing by 158.9% compared to the same period last year. Sales of albums and digital music, including overseas distribution, also contributed to increased profitability.

The film division recorded sales of 22.7 billion KRW and an operating loss of 100 million KRW. Although theater sales declined due to delays in new releases caused by COVID-19, increased demand for on-demand films led to a 40.5% increase in ancillary rights sales centered on the existing library compared to the previous quarter, contributing to performance.

A CJ ENM official stated, "In the first quarter, we continued efforts to strengthen our digital business capabilities, including the release of TVING original content and the launch announcement of the integrated live commerce brand 'CJ OnStyle.' We will accelerate the pace of innovation based on digital shift and continue growth by enhancing content and product competitiveness."

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