CJ CGV Turns to Profit in Q2, Driven by 4DPLEX Growth

Record-High 4DX Performance in North America, Sales Up 20.8%

Domestic Film Market Rebounds, Further Improvement Possible

CJ CGV announced on August 7 that it achieved sales of 593.9 billion won and an operating profit of 11.5 billion won in the second quarter of this year, turning a pre-tax profit of 9 billion won into the black. Sales increased by 20.8% compared to the same period last year, driven by the global growth of CJ 4DPLEX and the recovery of the domestic film market.

A CGV branch in Seoul. Photo by Yonhap News

CJ 4DPLEX showed the most notable growth, posting sales of 46.9 billion won and an operating profit of 8.3 billion won. Sales rose by 56%, and operating profit soared by 260%, thanks to the global expansion of premium formats such as ScreenX and 4DX and the strong box office performance of titles like "Super Mario Galaxy" and "Toy Story 5". In particular, box office results in North America reached record highs for the first half of the year.

The domestic theater business posted sales of 166 billion won and an operating loss of 6.2 billion won, continuing to operate at a loss but with clear improvement. Sales grew by 17% due to the film market recovery, box office success of movies such as "Gunché" and "Salmoekji", and the effect of government-issued discount coupons. Operating losses also narrowed by 11.1 billion won compared to last year.

Results from the overseas theater business varied by country. In Vietnam, the company recorded 64 billion won in sales and 7.4 billion won in operating profit, supported by successful self-distributed content. Despite a shrinking market in Indonesia, the company maintained profitability with 25.8 billion won in sales and 4.1 billion won in operating profit. In contrast, Turkey and China recorded operating losses of 4.1 billion won and 11.9 billion won, respectively.

CJ OliveNetworks, the non-film business unit, posted sales of 254.5 billion won and an operating profit of 20 billion won. Sales rose by 29% thanks to the expansion of AX businesses, including next-generation ERP and AI Factory operations. Operating profit also grew by 16% due to cost-efficiency measures.

In the second half of the year, the company expects recovery momentum to continue with the release of global blockbusters such as "Spider-Man: Brand New Day" and "Odyssey," as well as Korean films like "Hope." Conditions for screenings will also improve. CGV Yongsan I’Park Mall renewed its ScreenX auditorium last month, and CGV Yeouido will introduce the world's first three-sided LED ScreenX auditorium later this year.

Jongmin Jung, CEO of CGV, stated, "We achieved a turnaround to pre-tax profit as the results of global investments by CJ 4DPLEX were combined with the recovery of the domestic film market," and added, "In the second half of the year, we aim to further increase both profitability and growth through expansion of our global premium format business, AX business growth at CJ OliveNetworks, and strengthened competitiveness in the domestic theater business."

This content was produced with the assistance of AI translation services.