CJ CGV maintained its profitable trend in the second quarter of this year.
CJ CGV announced on the 7th that it recorded a consolidated revenue of 491.6 billion won and an operating profit of 1.7 billion won in the second quarter of this year. Revenue increased 14.3% compared to the same period last year, and while operating profit decreased, the profitable trend was maintained. This was supported by the expansion of CJ 4DPLEX's special venues and the enhancement of content performance, along with the effects of consolidation with CJ Olive Networks, driving revenue growth.
Looking at the detailed results, CJ 4DPLEX recorded a revenue of 30 billion won and an operating profit of 2.3 billion won. The films "Minecraft Movie" and "Mission Impossible: Final Reckoning" were successful in special venues like 4DX and SCREENX, and the number of special venues increased compared to last year, leading to a 28.2% increase in revenue.
In Indonesia, local content showed strength during the Lebaran holiday period, recording a revenue of 36.4 billion won and an operating profit of 8.9 billion won. In Vietnam, due to the success of local content and the reanimation film "Doraemon: The Movie: Nobita's Story", revenue reached 57.4 billion won, with an operating profit of 8 billion won.
In China, a revenue of 38.4 billion won and an operating loss of 11.6 billion won were recorded. Following the record high box office success of "Your Name 2" in the first quarter, the launch of new content has been insufficient, leading to a drop in both revenue and operating profit. In Turkey, revenue was 29.2 billion won with an operating loss of 3.9 billion won due to the off-season and inflation.
In the domestic market, influenced by a lack of successful films leading to a contraction in the national film market, revenue was 141.8 billion won with an operating loss of 17.3 billion won. Efforts to improve the cost structure and enhance workforce efficiency minimized the scale of the losses.
CJ Olive Networks recorded a revenue of 197.5 billion won and an operating profit of 17.3 billion won, maintaining growth through expansions in smart logistics and retail technology.
CJ CGV expects an improvement in performance in the third quarter due to the global expansion of CJ 4DPLEX, movie consumption coupons distributed by the government, and the release of anticipated films during the summer peak season.
CJ 4DPLEX is expected to accelerate growth through the expansion of special venues based on big deals with global theater chains, including 65 AMC locations and 50 Cinepolis theaters. In North America, "Jurassic World: New Beginning," released in July, set new all-time high box office records during the Independence Day weekend in both 4DX and SCREENX formats. Domestically, "F1 The Movie" has recorded the highest weekend occupancy rate for 4DX since the end of the pandemic, increasing expectations for the third-quarter performance.
In Vietnam, the lineup of local content and live K-POP performances will be strengthened, while in Indonesia, differentiated services will be provided through the release of various alternative content.
In China, the normalization of delayed content releases is anticipated, with expectations for a government-led market recovery. In Turkey, while efforts to minimize losses through cost efficiency continue, the burden of fixed costs due to high inflation is expected to gradually ease following the recent declining trend in inflation.
In the domestic market, a recovery in the market is expected due to the increase in audiences visiting theaters as a result of the government's consumer coupon policy. In particular, the recent release of the Korean film "My Daughter is a Zombie" has continuously broken records for the shortest box office success this year, revitalizing the theater landscape. Efforts to improve the revenue structure through strategic site optimization and fixed cost efficiency are also ongoing.
CJ Olive Networks plans to continue its growth focusing on core businesses based on AI Transformation, such as smart logistics, factory, entertainment technology, retail technology, and cloud.
In this regard, CJ CGV CEO Jung Jong-min noted, "CGV is currently focused on improving the revenue structure of domestic theater operations and building a high-revenue business model through the global expansion of CJ 4DPLEX. We will continue our efforts to accelerate growth beyond recovery through strategic big deals with global theater chains and the expansion of new businesses based on CG, VFX, and AI."
[Photo] Provided by CJ CGV.
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