CJ CGV posted 23.3 billion won in operating profit on a consolidation basis in the third quarter this year. That was down 27.2% from the same period a year earlier. The main reason appears to be that the domestic unit swung to a loss due to the absence of a blockbuster lineup and an increase in one-off expense from workforce optimization.
According to the Financial Supervisory Service's electronic disclosure system on the 6th, CJ CGV's third-quarter revenue on a consolidation basis was tentatively tallied at 583 billion won. That was up 6.6% from 547.1 billion won a year earlier. Operating profit for the same period was 23.3 billion won, down 27.2% from 32 billion won a year earlier.
The revenue increase was driven by growth in the overseas theater business centered on Southeast Asia, including Vietnam and Indonesia, and by more orders at Olive Networks. The Vietnam unit contributed to improved results, with revenue rising 42.2% year over year to 67.1 billion won on the success of the local film "Mua Do." Olive Networks also saw revenue rise 11.7% on the back of expanded system integration (SI) orders in logistics, finance, and retail.
The decline in operating profit was largely due to the domestic unit's swing to a loss. The domestic unit fell from a 4.4 billion won profit last year to a 5.6 billion won loss this year because of a lack of a blockbuster lineup and an increase in one-off expense during workforce optimization. The Türkiye unit also saw its loss widen from 1.9 billion won last year to 7.6 billion won due to higher fixed costs.
CJ CGV projected that in the fourth quarter, with Hollywood tentpoles such as "Avatar: The Fire and Ash," "Zootopia 2," and "Wicked: For Good" opening in succession, expansion in sales from technology-driven premium auditoriums and improvement in domestic and overseas theater performance will gather pace.
CJ 4DPLEX plans to accelerate the spread of premium auditoriums by strengthening strategic collaboration with global major exhibitors such as AMC, Cinepolis, and Cinemark, and to successively release worldwide Hollywood blockbusters and KPOP concert live content optimized for SCREENX and 4DX.
In Vietnam and Indonesia, the company will bolster profitability through new site openings and improvements to fixed-cost structures, aiming to maintain a stable profit streak. It will also expand alternative content such as KPOP and sports, and invigorate the distribution of Korean films in the Southeast Asian market.
In China and Türkiye, the company will continue to improve lease structures and enhance expense efficiency. In China, where releases such as "Avatar: The Fire and Ash" are confirmed, it plans to maximize the operational effects of technology-driven premium auditoriums such as SCREENX, 4DX, and IMAX to strengthen profitability.
In Korea, it will open "Avatar: The Fire and Ash," "Zootopia 2," and "Wicked: For Good" in succession in the fourth quarter. It also plans to continue efforts to improve the profit structure through structural reforms such as operational efficiency in response to changing market conditions.
CJ Olive Networks plans to accelerate growth centered on its core artificial intelligence transformation (AX) businesses—entertainment tech, retail tech, Smart Logistics and factory, and cloud—and to maximize profitability by strengthening competitiveness through improvements to the SI business structure.
Jeong Jong-min, CEO of CJ CGV, said, "In the third quarter, while the growth of the Southeast Asian theater business continued, we focused on expanding CJ 4DPLEX, which is drawing attention in the global market," and added, "In the fourth quarter, as large-scale content expected to be global hits continues to open, we will accelerate performance improvement centered on technology-driven premium auditoriums."