CJ ENM Posts 1.5 Billion Won Q1 Operating Profit... TVING and Overseas Sales Drive Growth

Film and Drama Division Returns to Profitability
TVING Subscribers Increase by 37%

On May 7, CJ ENM announced that it recorded 1.3297 trillion won in sales and 1.5 billion won in operating profit in the first quarter of this year. The growth in sales was driven by an increase in TVING subscribers and the expansion of overseas content sales.

By segment, the film and drama division posted sales of 457.3 billion won, a 44.8% increase compared to the previous year. Operating profit also turned positive at 8 billion won. This was attributed to the expansion of overseas sales of variety and music content through strengthened partnerships with platforms such as Netflix, Amazon Prime Video, HBO Max, and Disney+. Fifth Season also contributed to sales growth by supplying titles like "American Classic," "Good Daughter," and "East of Eden" to global OTT platforms.

The media platform division recorded sales of 326.8 billion won, up 11.6% from the previous year. However, due to a decline in TV advertising revenue, it posted an operating loss of 21.2 billion won. In contrast, TVING subscribers grew by 37.3% year-on-year, driven by the expansion of partnership products with companies such as SSG and Lotte Card. Exclusive content and the popularity of the World Baseball Classic (WBC) contributed to a 35.3% increase in advertising revenue compared to the previous year.

The music division posted sales of 167 billion won and an operating loss of 5.8 billion won. Although Alpha Drive One, which sold 1.44 million debut albums, and ZEROBASEONE, which completed a world tour, performed well, the division experienced a temporary decrease in profitability due to a reduction in large-scale events and increased investment in Mnet Plus infrastructure.

The commerce division saw sales rise to 378.5 billion won, up 4.5% from the previous year, but operating profit fell by 7.6% to 23.9 billion won. This was the result of increased investment to strengthen mobile competitiveness, such as producing commerce content and advancing AI capabilities. However, the transaction volume of mobile live commerce increased by 137% compared to the previous year.

A CJ ENM representative stated, "In the second quarter, we will focus on recovering profitability by improving business fundamentals in each segment and strengthening platform competitiveness."

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