CJ ENM Turns Profitable in Q1... Full Effort to Expand Content and Commerce (Update)

CJ ENM Announces Q1 2024 Earnings
Strong Performance in Drama and Original Content
Building AI Hyper-Personalized Video Shopping Platform

CJ ENM succeeded in recovering profitability in the first quarter of this year.

CJ ENM held a press conference on the 8th to introduce the business strategy of the tvN channel. (From left) Hong Gi-seong, Head of Media Business Division; Gu Ja-young, Marketing Manager; Park Sang-hyeok, Head of Channel Business Division.

CJ ENM announced on the 9th that it recorded consolidated sales of 1.1541 trillion KRW and an operating profit of 12.3 billion KRW in the first quarter of this year. Compared to the same period last year, sales increased by 21.6%, and operating profit turned positive from a loss of 50.3 billion KRW.

CJ ENM’s business is divided into ▲Media Platform ▲Film & Drama ▲Music ▲Commerce sectors.

First, in the Media Platform sector, tvN dramas such as "Nae Nampyeongwa Gyeolhonhaejwo" (Marry My Husband) and "Nunmureui Yeowang" (Queen of Tears) recorded high viewership ratings, and Tving original series achieved good results. As a result, media platform sales increased by 13.1% year-on-year to 314.2 billion KRW.

In particular, Tving’s paid subscribers increased by 13.3% compared to the previous quarter, boosted by the Korean Baseball Organization (KBO) broadcasts, and first-quarter sales rose 16.1% year-on-year. Content was jointly scheduled on tvN and Tving, and integrated marketing was used to reduce cost burdens. The media platform sector’s operating loss was 34.3 billion KRW in the first quarter of last year, but improved to an operating loss of 3.5 billion KRW in the first quarter of this year.

Hong Gi-seong, head of CJ ENM’s Media Business Division, said, "tvN is a channel that is younger and has a more advanced brand image than other channels," adding, "We will overcome the limitations of being a TV channel and enhance its appeal by offering advertising on Tving and YouTube together."

The Film & Drama sector recorded sales of 366.4 billion KRW, up 55.2% year-on-year, and an operating loss of 17.8 billion KRW, despite sluggish domestic theater releases, as premium content production and distribution in the global market expanded.

The Music sector continued its growth with strong performances by its own artists and successive successful debuts of new artists. First-quarter sales increased by 5.7% to 125.8 billion KRW, and operating profit was 4.8 billion KRW.

The Commerce sector saw increases in both sales and operating profit due to visible results in mobile live commerce and expansion of new brand launches through the One Platform 2.0 strategy. First-quarter sales were 347.8 billion KRW, and operating profit was 26.2 billion KRW.

CJ ENM has designated this year as the first year of mobile live commerce expansion. CJ ENM stated, "Through a mobile-centered One Platform strategy, we will strengthen mobile product competitiveness and transform the mobile application into an AI hyper-personalized video shopping platform," adding, "We plan to accelerate live programming and the expansion of short-form commerce."

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