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 upstream industry downturns.

• 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.

• Commerce segment saw robust mobile live commerce growth, though profitability was pressured by production costs.

Financial highlights

• Annual revenue reached ₩5.2314 trillion, up 19.8% year-over-year, with operating profit of ₩104.5 billion.

• Entertainment division: ₩3.78 trillion revenue, ₩21.3 billion operating profit; Commerce division: ₩1.4514 trillion revenue, ₩83.2 billion operating profit.

• Studio Dragon reported ₩550.1 billion revenue and ₩36.4 billion operating profit for 2024.

• 4Q24 entertainment revenue ₩1.39 trillion (+57.3% YoY), operating profit ₩20.7 billion (-36.8% YoY); commerce revenue ₩397.9 billion (+5.9% YoY), operating profit ₩20.3 billion (-21.9% YoY).

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

Outlook and guidance

• 2025 will focus on profit growth through content expansion, global reach, and digital platform integration.

• TVING targets 15 million global subscribers by 2027, including Wavve merger effects.

• Studio Dragon aims to double episode output in 2025, with revenue expected to remain stable.

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

• Plans to strengthen programming with new dramas and variety shows, expand global distribution, and leverage mega IPs for commerce growth.