CJ ENM CO (035760) Q4 2024 earnings summary

Executive summary

• Achieved a profit turnaround in 2024 with annual revenue of ₩5.2314 trillion, up 19.8% year-over-year, and operating profit of ₩104.5 billion, despite industry headwinds.

• 4Q24 revenue reached ₩1.7879 trillion, up 41.9% YoY, but operating profit declined 30.2% to ₩41.0 billion due to higher content costs.

• Strategic initiatives include content growth, global expansion, digital platform reinforcement, and mobile live commerce.

• Entertainment segment turned profitable, driven by TVING growth, content distribution, and strong artist album sales.

• Marking its 30th anniversary in 2025, aims to sustain profit growth through aggressive strategies.

Financial highlights

• 2024 annual revenue reached ₩5.2314 trillion, up 19.8% YoY; operating profit was ₩104.5 billion, marking a turnaround.

• Entertainment division: revenue ₩3.78 trillion (+24.7% YoY), operating profit ₩21.3 billion; commerce division: revenue ₩1.4514 trillion (+8.5% YoY), operating profit ₩83.2 billion.

• Studio Dragon: annual revenue ₩550.1 billion, operating profit ₩36.4 billion; Q4 revenue ₩130.6 billion, operating profit ₩5.4 billion.

• TVING Q4 revenue ₩122.7 billion, operating loss ₩14 billion; Fifth Season Q4 revenue ₩602.7 billion, operating profit ₩8 billion.

• 3Q24 included a one-time loss of ₩348.6 billion related to Livecity.

Outlook and guidance

• 2025 focus on expanding content lineup, global reach, and digital platforms, with plans to strengthen programming and grow TVING subscribers to 15 million by 2027.

• Commerce division aims for over 60% annual growth in mobile live commerce, targeting ₩870 billion in transaction volume by 2026.

• Studio Dragon to rebuild fundamentals, diversify platforms, and secure S/A-grade creators for higher hit ratios.

• Commerce to leverage mega IPs, data-driven product sourcing, and external channel integration for continued MLC growth.