CJ ENM announced on August 6 that it recorded sales of 1.2033 trillion won and an operating profit of 33.4 billion won in the second quarter of this year. While sales decreased by 8.3% compared to the same period last year, operating profit increased by 16.9%.
Specifically, the entertainment segment saw sales drop by 13.7% to 800.5 billion won. However, operating profit in this segment rose by 42.4% to 11.4 billion won, indicating improved profitability.
The commerce segment reported sales of 402.8 billion won, a 4.4% increase from the previous year, with operating profit growing by 21.2% to 26 billion won. This growth was attributed to enhanced app competitiveness and accelerated growth in mobile live commerce (MLC) based on short-form content.
In terms of segments, the media platform's sales increased by 19.0% year-on-year to 380 billion won, with operating profit reaching 11 billion won, marking a return to profitability. This growth was driven by expanded brand partnerships and the success of KBO and original content.
For instance, Tving has previously established partnerships with HBO Max and Disney+ to enter 17 countries in Japan and the Asia-Pacific region in the form of brand partnerships. However, the advertising market faced challenges due to the concentration of major events like the World Cup, leading to a 20.9% decline in TV advertising revenue.
The film and drama segment reported a 53.7% decrease in sales to 190.2 billion won, with an operating loss of 10.5 billion won. The focus has been on securing a stable global distribution base through individual sales to overseas local platforms, while demand for entertainment content has shown steady growth.
However, the global studio Fifth Season adjusted the delivery schedule of content based on the programming timelines of global OTT platforms, resulting in no major series deliveries this quarter.
The music segment saw sales increase by 16.7% to 230.2 billion won, although operating profit decreased by 36.4% to 10.9 billion won.
The commerce segment's sales reached 402.8 billion won, up 4.4% year-on-year, with operating profit increasing by 21.2% to 26 billion won. This growth was driven by the active dissemination of edited short-form content from live broadcasts on external channels like YouTube, Instagram, and TikTok. As a result, MLC transactions surged by 161.3% compared to the previous year, with new app installations rising by 25.6% and monthly active users (MAU) increasing by 10.5%.
A CJ ENM official stated, “The media platform segment has successfully returned to profitability, demonstrating the improvement of our platform business. This quarter also highlighted the expansion of ancillary businesses utilizing content IP, such as 'Becoming a Legend as a Cook,' and the achievements of music artists.” The official added, “In the second half of the year, we plan to continue expanding our platform customer base while diversifying the business of content and music IP and enhancing global distribution to maintain the trend of improving profitability.”
* This article has been translated by AI.
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