CJ ENM's operating profit for the second quarter of this year decreased by 19% compared to the same period last year. However, thanks to the performance of the overseas video content business and the music and commerce sectors, profitability improved compared to the previous first quarter.
On the 7th, CJ ENM announced that its consolidated operating profit for the second quarter of this year was 28.6 billion won, a decrease of 19.0% compared to the same period last year, according to preliminary figures.
This operating profit exceeded the market forecast of 13.1 billion won compiled by Yonhap Infomax by 118.4%.
Sales increased by 12.7% compared to the same period last year, reaching 1.31 trillion won, with a net profit of 114.6 billion won.
Compared to the previous quarter, sales increased by 15.3%, and operating profit surged by 3,961.1%. Net profit also turned to the black.
However, by segment, the weakness of the media platform was pronounced.
Media platform sales decreased by 9.5% compared to the same period last year, totaling 319.3 billion won, with an operating loss of 8 billion won.
CJ ENM explained that while some dramas like 'Unknown Seoul' and 'Someday, Wise Major's Life' garnered attention, they could not escape the impact of the advertising market recession.
The film and drama segment's sales reached 410.5 billion won, an increase of 42.7% compared to the same period last year. The operating loss was recorded at 1.2 billion won, a decrease from last year.
The U.S. studio Fifth Season's production of seasonal dramas like 'Nine Perfect Strangers 2' and 'Stripe 2' contributed to an operating profit of 3.2 billion won, leading to a turnaround to profitability.
The growth in the music sector is remarkable. Sales increased by 29.5% to 197.2 billion won, and operating profit surged by 248.7% to 17.1 billion won.
Japan's Rapone Entertainment achieved record quarterly sales of 92.2 billion won, while groups Zero Base One and I.N.I drove the music sector with successful album sales and concerts.
In the commerce sector, sales increased, but profitability deteriorated. In the second quarter of this year, sales rose by 3.7% to 385.8 billion won, while operating profit decreased by 22.0% to 21.4 billion won during the same period.
In particular, the transaction volume of mobile live commerce increased by 47.1% in the first half of the year, indicating an increase in mobile application (app) inflow.
For the second half of the year, the company aims to focus on enhancing business competitiveness.
In the media platform sector, various video contents such as 'Typhoon Company' and 'Chef of the Tyrant' will be introduced, and the synergy of online video services (OTT) Tving and Wave will be fully realized. Season 4 of 'Transit Love' and sports content like baseball will also be released.
In the film and drama sector, new content such as 'The Great Warrior', 'His and Hers', 'The Good Daughter', and 'The Savant' will be provided to global OTT platforms in the U.S.
New releases for the summer peak season include 'The Devil Has Moved In', as well as Park Chan-wook's new film 'Can't Help It' and Yorgos Lanthimos's 'Bugonia'.
In the music sector, the scale of overseas business will be expanded through global music content, and a Japan-Korea joint project 'Unpretty Rapstar: Hip Hop Princess' will be launched.
A new group will be discovered through 'Boys 2 Planet', while the competition program 'K-Pop'd' will also be showcased on Apple TV+.
