CJ ENM CO (035760) Q3 2024 earnings summary

Executive summary

• Achieved a year-over-year turnaround in profitability with consolidated revenue of ₩1.1246 trillion in Q3 2024, up 1.2%, and operating profit of ₩15.8 billion, a 113.8% increase, despite a sluggish advertising market and slow recovery in media and content production sectors.

• Growth was driven by strong TVing performance, mobile live commerce, and global music expansion, while Film & Drama underperformed.

• Strengthened global content sales, with notable hits in both drama and non-scripted entertainment, and increased synergy between channels and OTT platforms.

• Focused on improving profitability across business divisions, leveraging premium content, sports, and live commerce.

• 4Q24 will emphasize premium content, artist development, global concerts, and high-margin commerce portfolios.

Financial highlights

• Q3 2024 consolidated revenue was ₩1.1246 trillion, up 1.2% year-over-year, with operating profit rising 113.8% to ₩15.8 billion.

• Net loss of ₩531.4 billion due to one-off events, including a major loss on disposal of PPE from LiveCity contract nullification and corporate tax expenses.

• Media Platform revenue: ₩356.5 billion (up 13.4% YoY), operating profit: ₩10.8 billion (up 471.5% YoY).

• Entertainment/Film & Drama revenue: ₩251.6 billion (down 22.9% YoY), operating loss: ₩6.0 billion.

• Commerce revenue: ₩333.8 billion (up 11.2% YoY), operating profit: ₩9.2 billion (up 29.6% YoY).

Outlook and guidance

• Media platform to enhance channel viewership and TVing traffic with competitive content in Q4, including new original series and sports content.

• Pictures and drama to focus on profitability through expanded production, high-profile releases, and improved delivery.

• Music to debut new girl group, expand global tours, and build on album activities and live concerts.

• Commerce to maximize sales via mobile live commerce and brand promotions.

• TVing aims to reach break-even by year-end, with further growth expected from sports content and new business models in 2025.