CJ ENM CO (035760) Q4 2025 earnings summary

Executive summary

• Achieved significant global expansion and business model enhancement, with content ranking number one in the 2025 FUNdex for 27 weeks and five of the top 10 K-dramas on TVING per U.S. TIME, and major dramas and variety shows dominating TV-OTT viewership.

• Diversified profit models through strategic IP design, fan meetings, merchandise, and international successes such as "Bon Appétit, Your Majesty" and "Marry My Husband."

• TVING solidified its position as a global content hub for HBO Max Southeast Asia and Disney+, with branded zone expansion and international co-productions.

• FY2026 strategy focuses on transitioning to an IP and platform-driven business model, accelerating global business, and leveraging AI for content planning and production.

Financial highlights

• Q4 2025 revenue was KRW 1.427 trillion (W1,437.8bn), down 19.6% YoY, but operating profit more than doubled to KRW 86 billion (W86.0bn), up 109.8% YoY.

• Entertainment segment revenue fell 26.4% YoY to W1,023.5bn, but operating profit surged 152.8% YoY to W53.3bn.

• Commerce revenue increased 4.1% YoY to W414.3bn, with operating profit up 77.0% YoY to W35.9bn.

• Media Platform revenue grew 17.2% YoY to W409.6bn, with operating profit up 1,048.9% YoY to W17.8bn.

• Studio Dragon annual revenue reached KRW 530.7 billion, with operating profit of KRW 30.4 billion; Q4 operating margin was 12.7%.

Outlook and guidance

• FY2026 will prioritize platform competitiveness, securing global Mega IPs, and advancing mobile live commerce (MLC) business models.

• TVING expects further loss reduction in 2026, with some quarters potentially breaking even, driven by subscriber and ad revenue growth.

• Studio Dragon plans to expand its lineup to over 25 titles in 2026, focusing on production efficiency, AI utilization, and IP-centric monetization.

• Fifth Season will focus on profitability over top-line growth, with several titles in the pipeline for 2026.