CJ ENM Posts Q3 Operating Profit of KRW 22.1 Billion... Media Returns to Profit, Music Posts Loss

Revenue of KRW 1.1904 trillion, down 4.4% year over year
TVING ad revenue and overseas drama sales drive profit growth

CJ ENM headquarters in Sangam-dong, Seoul. Yonhap News.

CJ ENM disclosed in a regulatory filing on November 5 that it recorded consolidated revenue of KRW 1.1904 trillion and operating profit of KRW 22.1 billion in the third quarter. Revenue fell 4.4% from the same period last year, while operating profit rose 25.5%. It swung to a net loss of KRW 25 billion.

The Media Platform division posted revenue of KRW 351.8 billion, up 10% year over year. It recorded operating profit of KRW 5.9 billion, turning a profit after posting an operating loss of KRW 3.3 billion in the same period last year.

TVING, the online video streaming service (OTT), improved its performance on subscriber growth and higher advertising revenue. Its advertising revenue in the third quarter rose 42.1% year over year. Overseas, following HBO Max's Asia-Pacific service and Disney+ Japan, it opened a branded hub in August on Shahid, a streaming service available in 24 Middle East and North Africa markets.

The Film and Drama division recorded revenue of KRW 285.3 billion and operating profit of KRW 15.5 billion. Revenue fell 23.5% from KRW 372.9 billion in the same period last year, while operating profit more than doubled from KRW 6.8 billion. Deliveries of the Netflix original "Slowly, Intensely" and presales to global OTT platforms of titles including "Four Hands" and "Going to Work Tomorrow" drove the improvement in profitability.

Productions by overseas studio Fifth Season also performed well on global OTT platforms. The drama "East of Eden" and the film "Beasts," released in October, each ranked No. 1 in Netflix's global English-language TV and film rankings, respectively. The drama "Even First-Prize Lottery Winners Go to Work" ranked No. 1 in Disney+'s Japanese drama category.

The Music division's revenue rose 3.6% year over year to KRW 204.4 billion, but it posted an operating loss of KRW 7.3 billion. It had recorded operating profit of KRW 1.9 billion in the same period last year. CJ ENM said it posted an operating loss as it increased investment in producing original content for Mnet Plus and developing new artists.

Album and concert revenue increased. In its debut year, the group ALPHA DRIVE ONE had both of its albums become million-sellers in their first week of release, while Japanese group INI sold about 880,000 copies of its single "ANTHEM." About 83,000 people attended INI's first solo concerts at Tokyo Dome over two days. KCON LA 2026, held in Los Angeles in August, drew more than 142,000 attendees and brought together 144 companies and brands.

The Commerce division recorded revenue of KRW 348.9 billion and operating profit of KRW 6.7 billion. Revenue fell 1.9% and operating profit declined 46.8% from the same period last year. Gross merchandise value from mobile content commerce, which combines live broadcasts, short-form videos and creator-led sales, rose 104%, but investment costs for new businesses weighed on profit.

A CJ ENM official said, "In the fourth quarter, we plan to expand our advertising business and overseas distribution of content, strengthen our artists' competitiveness, and boost sales during the year-end shopping season."

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