CJ ENM CO (035760) Q2 2024 earnings summary

Executive summary

• Q2 2024 consolidated revenue rose 11% year-over-year to KRW 1.1647 trillion, with operating profit reaching KRW 35.3 billion, marking a turnaround from the previous year.

• TVING's paying subscribers grew 29% YoY, driving a 41% revenue increase; MAU surpassed 7.56 million.

• Digital platform expansion, premium IP, and global music revenue were key growth drivers.

• Viral drama hits and expanded variety shows contributed to increased traffic and global content distribution.

Financial highlights

• Entertainment revenue: KRW 792.8 billion; operating profit: KRW 7.8 billion.

• Commerce revenue: KRW 371.9 billion; operating profit: KRW 27.5 billion.

• TVING revenue: KRW 107.9 billion; operating loss narrowed to KRW 11.7 billion.

• Studio Dragon revenue: KRW 137.1 billion, down 16% YoY; operating profit: KRW 10.5 billion.

• Net profit for 2Q24 was KRW 10 billion, reversing a net loss of KRW 123 billion in 2Q23.

Outlook and guidance

• Focus on profit growth in H2 2024, with continued platform and content competitiveness.

• TVING expects further subscriber and ad revenue growth, aiming for a turnaround in the second half.

• Plans to drive digital platform optimization, expand global content distribution, and increase overseas music sales in H2 2024.

• Studio Dragon to prioritize profitability domestically, while seeking global growth opportunities.