CJ ENM CO (035760) Q2 2024 earnings summary

Executive summary

• Q2 2024 consolidated revenue rose 11% YoY to KRW 1.1647 trillion, with operating profit reaching KRW 35.3 billion, marking a turnaround; H1 2024 revenue reached 2.32 trillion KRW, up 16% YoY, with all segments contributing.

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

• Fifth Season's revenue surged 106% YoY, driven by strong overseas content sales and premium IPs.

• Commerce and media platform segments are the largest contributors, each accounting for over 28% of total sales.

• Ongoing expansion in digital, OTT, and global content production, including new subsidiaries and international partnerships.

Financial highlights

• 2Q24 revenue: KRW 1.1647 trillion (up 11% YoY); operating profit: KRW 35.3 billion; net profit: KRW 10 billion, reversing a net loss of KRW 123 billion in 2Q23.

• 2024 H1 consolidated revenue: KRW 2,318.9 billion; operating profit: KRW 47.7 billion; net income attributable to controlling interest: KRW 5.8 billion.

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

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

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

Outlook and guidance

• Focus on accelerating OTT (TVING) growth, expanding digital and global content, and leveraging new technologies (XR, metaverse, AI) for content production.

• TVING aims to minimize subscriber attrition post-KBO season by expanding sports and original content.

• Fifth Season expects normalized production and delivery, with 8 premium drama deliveries planned for the year.

• Studio Dragon to prioritize profitability in domestic market and seek new global OTT opportunities.

• Continued investment in IP, global partnerships, and digital transformation to drive future growth.