CJ ENM Reports Q2 Operating Profit of 73.4 Billion KRW, Down 16% YoY

Sales of 837.5 Billion KRW, Down 16.7%
Commerce Division Profit, Double-Digit Growth
'COVID-19 Impact' Music and Film Sectors Slump

[Asia Economy Reporter Lim Hye-seon] CJ ENM announced on the 6th that its sales in the second quarter of this year reached 837.5 billion KRW, with an operating profit of 73.4 billion KRW. This represents a decrease of 16.7% and 16.1%, respectively, compared to the same period last year.

The media division recorded sales of 406.3 billion KRW and an operating profit of 24.9 billion KRW, driven by the popularity of major content such as the drama "Hospital Playlist" and the variety show "Three Meals a Day: Fishing Village 5." The number of paid subscribers on TVING increased by 66.2% compared to the same period last year, and digital advertising revenue grew due to increased traffic on digital platforms, resulting in the highest-ever digital sales.

The commerce division achieved double-digit growth with an operating profit of 49.8 billion KRW. Profit growth was driven by a bold reduction of low-profit online products, expansion of exclusive brand sales such as Atssential, Secret, and Daniel Cremieux, and increased demand for health foods and daily necessities due to COVID-19. Sales increased by 5.2% year-on-year to 376.2 billion KRW, while transaction volume decreased by 4.5% to 972.3 billion KRW. In the second half of the year, CJ ENM plans to strengthen the capabilities of online specialty malls in key product categories such as fashion, beauty, and food, and to expand exclusive brands mainly in the food and fashion categories to reinforce a profit-centered operational policy.

The music division recorded sales of 42.5 billion KRW and an operating profit of 2.1 billion KRW. In particular, album and music sales through artists such as IZ*ONE and Heize increased by 17.6% compared to the same period last year. The film division posted sales of 12.5 billion KRW and an operating loss of 3.5 billion KRW. Sales declined due to the suspension of domestic and overseas theater releases caused by the impact of COVID-19.