CJ ENM Q3 Operating Profit 87.8 Billion KRW... Up 23.6% YoY (Comprehensive)

[Asia Economy Reporter Lim Chun-han] CJ ENM announced on the 4th that its consolidated operating profit for the third quarter of this year was tentatively estimated at 87.8 billion KRW, a 23.6% increase compared to the same period last year. Sales reached 857.5 billion KRW, up 7.4% year-on-year. Net profit rose 128.5% to 74.4 billion KRW.

The media division recorded sales of 442.8 billion KRW, a 19.5% increase year-on-year, and operating profit of 64.2 billion KRW, up 119.4%. Thanks to strong viewership of Hospital Playlist Season 2 and Hometown Cha-Cha-Cha, TV advertising and content sales increased by 22.9% and 33.3%, respectively, compared to the same period last year. TVING saw a 37.8% surge in paid subscribers compared to the previous quarter, driven by the popularity of shows like Transit Love. With the expansion of digital original content, digital sales also grew 56.8% year-on-year.

The commerce division posted sales of 315.8 billion KRW, operating profit of 27 billion KRW, and transaction volume of 905.1 billion KRW. Sales and operating profit declined due to the summer off-season and late heatwave, increased offline consumption demand trends, costs related to the shift to mobile-centered business, and increased TV channel operation expenses. However, stable digital transformation is underway, with new mobile application customers increasing by 43% year-on-year and digital transaction volume rising.

The music division recorded sales of 65.8 billion KRW, up 40.4% year-on-year, and operating profit of 10.9 billion KRW, a 210.7% increase over the same period. The group JO1, active in Japan, topped the Oricon chart, showing strong album sales, and global achievements expanded with revenues from programs like Produce 101 JAPAN SEASON 2, enhancing profitability. Domestically, steady sales were maintained through OST libraries released from Hospital Playlist and Show Me the Money, and the performance of sub-labels such as the Japanese joint venture LAPONE and the domestic joint venture Belief Lab also contributed to improved profitability.

The film division recorded sales of 33.1 billion KRW and an operating loss of 14.3 billion KRW, affected by sluggish box office and musical market recovery delays due to COVID-19, resulting in poor performance of released and premiered works.

A CJ ENM official stated, “We plan to continuously expand premium original IP and digital businesses,” adding, “We will also accelerate global growth by increasing co-productions with major overseas content companies.”

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