CJ ENM reported an operating profit of 28.6 billion won in the second quarter of this year, a decrease of 19% compared to the same period last year. This is attributed to a decline in sales within the media platform due to a slump in the advertising market. However, CJ ENM noted that it is recovering its revenue based on improvements in content viewership and popularity, the turnaround of U.S. studio Fifth Season to profitability, and the strong performance of Japan's Rapone Entertainment.
CJ ENM announced on the 8th that its consolidated revenue in the second quarter of this year reached 1.3129 trillion won, an increase of 12.7% compared to the same period last year. The operating profit recorded a decline of 19% at 28.6 billion won.
The reason for CJ ENM's declining revenue is interpreted as a loss in the media platform institutional sector due to a downturn in the advertising market. The revenue of the media platform institutional sector in the second quarter of this year decreased by 9.5% year-on-year to 319.3 billion won. The operating loss is 8 billion won.
In contrast, the film and drama institutional sector achieved a revenue of 410.5 billion won, an increase of 42.7% compared to last year, thanks to the expansion of overseas premium content delivery and the diversification of distribution for domestic content abroad. The operating loss during the same period was reduced to 1.2 billion won.
The music institutional sector continued solid growth based on successful artist album sales and concerts in Japan. Revenue increased by 29.5% year-on-year to 19.72 billion won, while operating profit rose by 248.7% to 1.71 billion won.
In the commerce institutional sector, second-quarter revenue recorded 38.58 billion won, up 3.7% year-on-year. The operating profit was 2.14 billion won, thanks to the popularity of new content intellectual property based on video shopping and improved fast delivery competitiveness.
CJ ENM stated that it plans to consecutively introduce dramas and entertainment content that are drawing viewers' expectations, such as "Bon Appetit, Your Majesty," "Typhoon Trading Company," and "I Am Boxer." It also noted that it will strengthen the synergy between TVING and Wavve, aiming to improve profitability through TVING original series content and sports content, including the Korea Baseball Organization.