CJ ENM CO (035760) Q2 2024 earnings summary

Executive summary

• Q2 2024 consolidated revenue rose 11% year-over-year to KRW 1.1647 trillion, with operating profit reaching KRW 35.3 billion, marking a turnaround from the previous year.

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

• Entertainment and commerce segments both contributed to profit recovery, with platform and overseas sales growth standing out.

• Viral drama hits, expanded variety shows, and global music releases contributed to increased traffic and global content distribution.

• Operates across four main segments: media platform, film/drama, music, and commerce, with a global footprint and diversified revenue streams.

Financial highlights

• 2024 H1 consolidated revenue: 2,318.9 billion KRW (up 16% YoY); Q2 2024 revenue: KRW 1.1647 trillion, up 11% YoY.

• Operating profit for H1 2024: 47.7 billion KRW (vs. -80.7 billion KRW in 2023 H1); Q2 operating profit: KRW 35.3 billion.

• Net income attributable to controlling interest for H1 2024: 5.8 billion KRW; Q2 net profit: W10bn, reversing a net loss of W123bn in Q2 2023.

• Entertainment revenue: KRW 792.8 billion; operating profit: KRW 7.8 billion. Commerce revenue: KRW 371.9 billion; operating profit: KRW 27.5 billion.

• TVING revenue: KRW 107.9 billion; operating loss narrowed to KRW 11.7 billion.

Outlook and guidance

• Focus on profit growth in H2 2024, with continued platform and content competitiveness, digital platform optimization, and global content expansion.

• TVING expects further subscriber and ad revenue growth, aiming for a turnaround in the second half.

• Fifth Season plans 8 premium drama deliveries in 2024, with normalization after industry strikes.

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

• No explicit forward guidance provided, but management emphasizes profitability improvement and business model diversification.