[Asia Economy Reporter Lim Chun-han] CJ ENM announced on the 5th that its consolidated operating profit for the second quarter of this year was tentatively estimated at 85.8 billion KRW, a 16.9% increase compared to the same period last year. Sales increased by 8.4% year-on-year to 907.9 billion KRW, and net profit rose by 34.7% to 53.2 billion KRW.
The media division recorded sales of 456.4 billion KRW and an operating profit of 57.7 billion KRW, growing 131.8% year-on-year, driven by continued growth in TV advertising and digital sales. In the second quarter, TV advertising revenue increased by 30.1% year-on-year, fueled by highly popular content such as the drama "Hospital Playlist Season 2," which recorded the highest viewership ratings in tvN history based on its first broadcast, and the variety show "You Quiz on the Block." Digital sales also grew by 54.6% year-on-year. In particular, riding on the popularity of original content, TVING’s paid subscribers increased by 43.6% compared to the first quarter.
The commerce division posted sales of 357.4 billion KRW, operating profit of 29.9 billion KRW, and transaction volume of 949.3 billion KRW. In the first half of this year, profits declined due to increased offline demand driven by COVID-19 recovery sentiment and higher costs from business transformation focused on mobile, including a new BI overhaul. However, meaningful achievements were made, such as stable mobile conversion of existing loyal TV customers, increased transaction volume of fashion-centered private brands, and expansion of the digital transaction volume ratio.
The music division recorded sales of 65.4 billion KRW, a 53.8% increase year-on-year, and an operating profit of 2.1 billion KRW. Despite a decline in concert revenue due to COVID-19, sales growth was driven by artists under the label such as ENHYPEN and JO1, who sold approximately one million albums during the second quarter. Sales of albums and digital music through OSTs and libraries also expanded.
The film division posted sales of 28.8 billion KRW, a 129.6% increase year-on-year, but recorded an operating loss of 4 billion KRW. Although the domestic and overseas film markets remained sluggish due to COVID-19 and the musical market recovery was delayed, theater sales resumed with releases such as "Seobok" and "Limited Broadcast," and library ancillary rights sales increased by 102.7% compared to the same period last year.
A CJ ENM official stated, "Based on our unparalleled content production capabilities, we plan to continue the growth of not only the traditional TV business but also new businesses such as OTT, advertising, and commerce based on digital platforms in the second half of the year."
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