CJ ENM Reports Operating Profit of 49.6 Billion KRW in Q1, Down 47% YoY (Comprehensive)

[Asia Economy Reporter Lim Chun-han] CJ ENM announced on the 11th that its consolidated operating profit for the first quarter of this year was tentatively estimated at 49.6 billion KRW, a 47% decrease compared to the same period last year. Sales increased by 20.9% year-on-year to 957.3 billion KRW, while net profit fell by 98% to 1.6 billion KRW.

Media division sales rose 41.5% year-on-year to 546.4 billion KRW, while operating profit decreased by 38.2% to 33.3 billion KRW. TV advertising increased by 8.1% year-on-year due to strong viewership ratings of popular programs such as Twenty-Five Twenty-One, Military Prosecutor Doberman, and Unexpected Business 2, and digital sales grew 55.8% year-on-year, maintaining high growth. The acquisition of Endeavor Content last year contributed to significant sales growth. However, profitability recovery fell short of expectations due to increased production costs from expanding TVING original content, delays in some productions and releases by Endeavor Content, and one-time expenses.

The commerce division recorded sales of 317.3 billion KRW, operating profit of 12.9 billion KRW, and transaction volume of 911.1 billion KRW. Performance declined compared to the previous year due to increased fixed costs including TV transmission fees and temporary factors such as the parcel delivery strike. However, transaction volume of in-house brands focused on fashion and living increased by about 30% year-on-year, and the proportion of digital transaction volume relative to total transaction volume also rose.

The music division posted sales of 66.6 billion KRW, up 27.7% year-on-year, and operating profit of 12.9 billion KRW, a 107.0% increase. Album sales of popular artists expanded, driven by the debut album of Kep1er, formed through the Girls Planet 999 program, and the repackaged album of ENHYPEN. The global fanbases of in-house global artists such as INI and JO1 also expanded, leading to growth in global sales and profitability.

The film division continued to suffer operating losses due to a sales gap caused by the absence of theatrical releases and musical performances, as well as a decline in ancillary rights sales. The first quarter recorded sales of 27.0 billion KRW and an operating loss of 9.4 billion KRW, but performance is expected to improve in the second quarter thanks to theater reopenings and box office recovery.

A CJ ENM official said, “We will strengthen content distribution channels through our global network to represent Korea domestically and firmly establish growth in the global market.”

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