CJ CGV(079160)'s operating profit in the second quarter of this year rose more than 500% from the same period last year. The recovery in Korea's film market and the performance of technology specialty theaters combined to drive the results.
CGV said on the 7th that second-quarter operating profit came to 11.5 billion won, up 568% from a year earlier. Profit before income tax (pre-tax profit) was 9 billion won, turning a profit for the first time since the third quarter of 2024. Revenue totaled 593.9 billion won, up 20.8% over the same period.
The recovery in the domestic film market appears to have led to improved profitability. The company said the box-office success of the films "Colony" and "Salmokji," the government's distribution of movie-watching discount coupons, and business structure improvements all played a role.
In the second quarter, CGV's domestic business revenue was 166 billion won, up 17.0% year over year, and operating loss was 6.2 billion won, narrowing the deficit by 11.1 billion won.
The performance of technology specialty theaters such as ScreenX and 4DX also supported the results. CJ 4DPLEX, a CGV subsidiary that operates the specialty formats, posted operating profit of 8.3 billion won, up 260.9% from a year earlier. Revenue rose 56.3% to 46.9 billion won.
CJ OliveNetworks, the systems business institutional sector, saw revenue grow 28.8% to 254.5 billion won on the back of expansion in artificial intelligence (AI)-related business. Operating profit was 20 billion won, up 15.6%.
In the second half of this year, growth is expected to continue with the release of blockbuster new titles including the film "Hope," as well as "Spider-Man" and "Odyssey." The company also plans to expand technology specialty theaters such as ScreenX.