CJ ENM CO (035760) Q2 2026 earnings summary

Executive summary

• Operating profit increased 17% year-over-year in Q2 2026, despite an 8% YoY revenue decline to KRW 1.2033 trillion.

• Profitability gains were driven by diversified revenue streams from content and artist IP, expansion of platform businesses like TVING, Mnet Plus, and Commerce, and a turnaround in Media Platform.

• Advanced growth through digital platform expansion, global content strategies, and scaling fandom-based business models with significant subscriber and MAU growth.

Financial highlights

• Revenue: KRW 1.2033 trillion, down 8.3% YoY; operating profit: KRW 33.4 billion, up 16.9% YoY.

• Studio Dragon revenue grew 26.9% YoY to KRW 145.3 billion; operating profit turned positive at KRW 15.4 billion.

• TVING revenue: KRW 140.7 billion, operating profit: KRW 6 billion.

• Commerce revenue: KRW 402.8 billion, up 4.4% YoY; operating profit: KRW 26.0 billion, up 21.2% YoY.

• Net profit for Q2 2026 was KRW 22 billion, a turnaround from a net loss in Q1 2026.

Outlook and guidance

• Continued focus on expanding IP monetization, platform subscriber growth, and global content portfolio, targeting overseas markets including India, Middle East, and LATAM.

• TVING expects increased content costs in H2 but aims to offset with subscriber and ad revenue growth.

• Studio Dragon to maintain growth with blockbuster lineups and expanded pre-sales.

• Commerce business to expand external customer base and enhance creator commerce.

• Music to expand HIP activities and global tours.