CJ ENM reported a significant increase in operating profit for the third quarter of this year, driven by a turnaround in its media platform division and expanded global sales of films and dramas.
On November 5, CJ ENM announced that its consolidated operating profit for the third quarter rose 25.5% year-on-year to 22.1 billion won. During the same period, revenue decreased by 4.4% to 1.19 trillion won, while net profit turned to a loss of 25 billion won.
The media platform division saw revenue increase by 10.0% year-on-year to 35.18 billion won, with operating profit turning positive at 5.9 billion won. Despite the seasonal downturn in the broadcasting advertising market, strong viewership of key content and diversification of advertising products helped mitigate the decline in TV advertising revenue. Tving continued its growth with an increase in subscribers and a 42.1% rise in advertising revenue, and in August, it launched a Tving brand store on 'MBC Shahid,' which serves 24 regions in the Middle East and North Africa.
The film and drama division recorded revenue of 28.53 billion won and operating profit of 1.55 billion won. The delivery of the Netflix original 'Slowly but Intensely' and expanded global sales of titles like 'Four Hands' and 'Tomorrow, I Go to Work' contributed to improved profitability. In July, CJ ENM established a content partnership with Amazon Prime Video India. The TV series 'East of Eden' and the film 'Beasts' both reached the top of Netflix's global English TV and film categories, while 'Winning the Lottery' topped the Disney+ Japan drama category.
In the music division, revenue increased by 3.6% year-on-year to 20.44 billion won, driven by the success of global artists' albums and performances, as well as expanded tours. The group 'INI' attracted approximately 83,000 attendees over two days at a solo concert at Tokyo Dome, and 'KCON LA 2026' drew over 140,000 visitors. However, due to high performance levels in the previous year and increased investments in Mnet Plus original IP and nurturing new artists, the division reported an operating loss of 7.3 billion won.
The commerce division recorded revenue of 34.89 billion won and operating profit of 6.7 billion won. Increased investments in future growth projects, such as the creator business platform 'Ontner,' led to a decline in operating profit. The combined gross merchandise volume of mobile content commerce (MLC), which includes live, short-form, and creator commerce, grew by 104% year-on-year, with creator commerce up 172% and short-form up 129%. Mobile app downloads and monthly active users increased by 10.6% and 11%, respectively, while overall gross merchandise volume grew by 5.8%.
A CJ ENM representative stated, “In the third quarter, the media platform division turned profitable due to strengthened competitiveness in the advertising business and expanded global content sales, while the film and drama division also saw an increase in operating profit. In the fourth quarter, we will focus on enhancing integrated advertising business capabilities and expanding overseas distribution of content, as well as maximizing the effects of the peak season in commerce and enhancing the competitiveness of global artists.”
* This article has been translated by AI.
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