CJ ENM Reports 71% Drop in Operating Profit Due to Poor Theater Movie Performance... Music and Commerce Perform Well (Comprehensive)

Q3 Earnings Announcement on the 8th... Sales Down 5.7%
Operating Loss of 20.4 Billion KRW in Film and Drama Division
"Theatrical Film Underperformance" "Focusing on Profitability Improvement"

Content company CJ ENM announced on the 8th that its consolidated sales for the third quarter of this year reached 1.1109 trillion KRW, down 5.7% from the same period last year, and operating profit fell 71% to 7.4 billion KRW.

[Image source=Yonhap News]

Specifically, the media platform division recorded sales of 314.2 billion KRW, down 8.3% from the same period last year, and an operating profit of 1.9 billion KRW.

A CJ ENM official explained, "Thanks to the increase in paid subscribers and continued traffic growth on TVING, we turned a profit compared to the previous quarter," adding, "The burden of content amortization for TVING was alleviated through strengthened joint programming strategies between channels and platforms."

The film and drama division posted sales of 326.2 billion KRW, down 8.7%, and an operating loss of 20.4 billion KRW. The company stated, "The sluggish theater box office acted as a burden on profitability."

The music division recorded sales of 170 billion KRW, a 0.5% increase year-on-year, and an operating profit of 15.5 billion KRW. The debut album and second mini-album of the idol group 'ZeroBaseOne' gained popularity, and the KCON event held in the United States attracted a record-breaking audience of 140,000, which contributed significantly.

The commerce division achieved sales of 300.3 billion KRW (a 2.9% increase) and an operating profit of 7.1 billion KRW. Accelerating the one-platform strategy that organically combines commerce channels such as TV and mobile enhanced product-content competitiveness, leading to strong results.

Significant achievements were made through strengthening collaborations with major brands via exclusive new product launches and improving profitability centered on strategic categories such as fashion, beauty, and travel.

CJ ENM plans to focus on improving profitability by division starting from the fourth quarter of this year.

The media platform division aims to maximize advertising revenue and TVING viewing traffic inflow by strengthening content competitiveness centered on premium content. The film and drama division plans to expand global distribution of content and focus on maximizing IP profitability.

The music division will accelerate growth supported by activities of major artists. Idol groups 'Kep1er' and 'INI' are scheduled to release their third and fifth singles respectively in Japan. A large-scale global convention event is also planned at the end of the year, raising expectations for revenue growth.

The commerce division plans to focus on sales in the fashion category during the FW season fashion peak in the fourth quarter. Additionally, it will increase sales through large-scale one-platform promotions utilizing various forms of content commerce such as YouTube and short-form videos.

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