CJ ENM posts higher second-quarter operating profit as revenue falls

CJ ENM's second-quarter operating profit rose to 33.4 billion won from 28.6 billion won a year earlier, with growth in Tving subscribers and advertising sales lifting its media-platform business.

Revenue fell 8.3 percent to 1.2 trillion won from 1.31 trillion won, and net income dropped 80.6 percent to 22.2 billion won from 115 billion won.

The media-platform unit returned to an operating profit, reporting revenue of 380 billion won and operating profit of 11 billion won. The popularity of KBO programming and original content drove net additions to Tving subscribers, which rose 24.7 percent from a year earlier, while advertising revenue increased 52.2 percent.

Film and drama reported revenue of 190 billion won, down 53.7 percent from a year earlier, and an operating loss of 10.5 billion won because of a gap in delivery of Fifth Season drama series, despite higher overseas sales from domestic studios. Music revenue rose 16.7 percent to 230 billion won on successful album releases by INI and ZB1 and expanded activity by new artists, but operating profit fell 36.4 percent to 10.9 billion won as investment in Mnet Plus and new artists increased costs.

Commerce generated revenue of 403 billion won and operating profit of 26 billion won, up 4.4 percent and 21.2 percent, respectively, from a year earlier. Mobile live-commerce transaction volume rose 161.3 percent, aided by strategic merchandise operations.

For the second half, CJ ENM plans to expand film and drama distribution into new overseas markets in India, the Middle East and Latin America. Commerce plans to attract new customers and strengthen customer lock-in.