CJ ENM CO (035760) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached KRW 1.29 trillion (W1,329.7bn), up 17% YoY, with operating profit at KRW 1.5 billion, a 107.2% YoY increase.

• Growth was driven by strong entertainment content sales, TVING subscriber surge, and expanded commerce IP.

• Profitability was challenged but is expected to recover in Q2 2026 through ad business and platform enhancements.

Financial highlights

• TVING revenue reached KRW 103 billion with an operating loss of KRW 19.2 billion, a YoY improvement of KRW 14.5 billion.

• Fifth Season revenue was KRW 233.6 billion with an operating loss of KRW 2.9 billion, also improving by KRW 14.5 billion YoY.

• Studio Dragon posted KRW 155.3 billion in revenue and KRW 6.4 billion in operating profit, up 16% YoY and 50.1% YoY respectively.

• Scripted (Film & Drama) revenue surged 44.8% YoY to W457.3bn, with operating profit of W8.0bn.

• Mnet Plus surpassed 44 million subscribers, with revenue up 260%.

Outlook and guidance

• Q2 focus includes recovering advertising revenue through integrated products and advanced sponsorship strategies.

• Profitability expected to improve in H2 2026 as IP-based revenue models and business structure optimization take effect.

• TVING expects to reach break-even from Q2, driven by ad income and content supply normalization.

• Scripted segment to expand global sales and co-productions, with new deals in Japan, North America, and Russia.

• Commerce to focus on IP expansion, premium products, and sustained MLC growth through AI and influencer commerce.