CJ ENM, Tving's Clear Growth Trend... "Sunny" Outlook for Second Half

[Asia Economy Reporter Ji-hwan Park] Eugene Investment & Securities forecasted on the 7th that Tving's growth momentum will remain prominent in the second half of the year for CJ ENM. They maintained a 'Buy' investment rating and a target price of 230,000 KRW.

Researcher Hyunji Lee of Eugene Investment & Securities stated, "CJ ENM's second-quarter revenue was 907.9 billion KRW, and operating profit was 85.8 billion KRW, representing increases of 8.4% and 16.9% year-over-year, respectively." The media segment's operating profit was 57.7 billion KRW, showing a 131.8% growth in performance over one year. It recorded the highest operating profit ever for the second consecutive quarter.

As content buzz increased, TV advertising revenue (30.1%) grew significantly due to enhanced channel competitiveness, and digital revenue (54.6%) rose sharply due to strengthened branded content, contributing greatly to profits. Researcher Lee said, "Commerce saw a significant profit decline despite the expansion of digital transaction volume due to one-time costs related to investments in mobile platforms."

In film, diversified distribution strategies such as simultaneous releases in theaters and over-the-top (OTT) services led to top-line growth compared to the previous quarter. In music, despite pre-production expenses for the Produce series, profitability was maintained thanks to strong album and digital music sales from owned artists.

In particular, Tving's growth was steep. Tving's paid subscribers increased by 43.6% compared to the previous quarter. In addition to the effect of Naver Membership, the user base diversified by expanding the lineup to include not only original content such as popular variety shows and dramas but also sports events like Euro 2020. Researcher Lee emphasized, "Based on aggressive investments to expand the content library and platform partnerships, the net increase in paid subscribers is expected to become more pronounced as we move into the second half of the year."

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