Tving has successfully turned a profit in the second quarter, thanks to the popularity of Korean professional baseball (KBO) and the success of its original content. However, the financial impact of customer compensation related to a data breach and potential fines remains a concern for future performance.
On August 6, CJ ENM announced during a conference call that Tving recorded second-quarter revenues of 140.7 billion won and an operating profit of 6 billion won.
Jang Hyun-kyung, Tving's Chief Financial Officer, stated, "Tving's revenue grew by 40% compared to the same period last year," adding, "We have turned a profit in operating income."
This success is attributed to the KBO's popularity. Original titles such as 'The Legend of the Cook' and 'Yumi's Cells 3' have also contributed to an increase in subscribers and monthly active users (MAU).
Jang noted, "Advertising and subscriber revenue have seen significant growth," but cautioned that the third quarter may be less robust due to the seasonal decline in advertising and increased supply costs, along with a predicted short-term decrease in overseas sales. "It is expected to be somewhat sluggish compared to the second quarter," he explained.
However, uncertainties remain. A data breach incident occurred in June, affecting an estimated 19.8 million accounts.
Jang pointed out, "The financial implications related to the data breach could involve two main factors: customer compensation plans and penalties or fines." He indicated that the internal compensation plan would be unveiled around September or October.
He added, "Fines and penalties will be determined after the completion of the investigation by the Personal Information Protection Commission, and since they are calculated based on revenue, they will have an impact."
The merger between Tving and Wavve is still in progress. CJ ENM plans to advance discussions on the merger in the second half of the year and continue negotiations with strategic investors in conjunction with discussions with KT.
* This article has been translated by AI.
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