Fifth Season in the US Turns Profitable
Global Distribution of K-Content Expands
But Advertising Market Slump Still Weighs Down Results
CJ ENM reported an operating profit of 28.6 billion won for the second quarter of this year, marking a 19% decrease compared to the same period last year. Looking ahead, the company plans to further strengthen the synergy between Tving and Wavve, and to expand its global presence in the film and drama sectors based on premium content.
On August 7, CJ ENM announced on a consolidated basis that its sales for the second quarter of 2025 reached 1.3129 trillion won, a 12.7% increase from the same period last year, while operating profit decreased by 19% to 28.6 billion won.
By segment, media platform sales fell by 9.5% year-on-year to 319.3 billion won, with an operating loss of 8 billion won. Although dramas such as "Unknown Seoul" and "Someday, Wise Resident Life" achieved high viewership ratings, the division could not avoid the negative impact of the sluggish advertising market.
In contrast, the online video service (OTT) Tving has begun to generate synergy with Wavve following the Korea Fair Trade Commission's approval in June for executives to concurrently serve at both companies. The introduction of the "Double Subscription" plan, which allows access to both Wavve and Tving content, partnerships with Baemin, and the launch of ad-supported pricing plans have led to increases in both monthly active users (MAU) and subscriber numbers. Advertising revenue grew by 88% year-on-year, driven by the popularity of the KBO.
The film and drama segment recorded sales of 410.5 billion won, a 42.7% increase from last year. Operating loss for the same period was reduced to 1.2 billion won. The turnaround to profitability at US-based studio Fifth Season, along with expanded distribution of K-content through partnerships with global OTT platforms, contributed to sales growth.
In the music segment, sales increased by 29.5% year-on-year to 197.2 billion won, and operating profit rose by 248.7% to 17.1 billion won. In particular, Lapone Entertainment in Japan achieved record quarterly sales of 92.2 billion won, driving overall sales growth.
In the commerce segment, represented by CJ OnStyle, second-quarter sales rose by 3.7% year-on-year to 385.8 billion won, with operating profit at 21.4 billion won. The spread of short-form content on external channels such as YouTube and TikTok led to increased traffic to the mobile application, resulting in a 47.1% increase in mobile live commerce transaction volume in the first half of the year.
A CJ ENM official stated, "In the second quarter, we demonstrated unrivaled production capabilities through numerous well-made content," adding, "Our global business continues to show stable growth, particularly in Japan and the United States."
This year, CJ ENM is focusing on strengthening its competitive edge in well-made content production, accelerating global expansion, enhancing digital platforms, and bolstering e-commerce capabilities to support the sustained growth of mobile live commerce.
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