Contents company CJ ENM (035760) announced on the 11th that it recorded sales of 957.3 billion won and operating profit of 49.6 billion won in the first quarter of 2022. Sales increased 20.9% YoY thanks to top-line growth in the media division such as drama and entertainment, but operating profit decreased 47.0% due to sluggish profitability.
Sales of the media division recorded 546.4 billion won, up 41.5% from the same period last year, and operating profit decreased 38.2% to 33.3 billion won. , , TV advertisements increased 8.1% year-on-year thanks to the strong viewer ratings of popular programs such as TV commercials, maintaining solid growth, and digital sales continued high growth, increasing 55.8% year-on-year. The performance of Endeavor Contents, which it acquired last year, was linked to a significant sales growth. Profitability recovery fell short of expectations as production costs increased due to the expansion of Teabing original content, delays in the production and release of some Endeavor content, and one-off costs were reflected.
The commerce division recorded sales of 317.3 billion won, operating profit of 12.9 billion won, and billings of 911.1 billion won. Earnings declined compared to the previous year due to temporary factors such as an increase in fixed costs including TV transmission commissions and a delivery strike. However, billings for in-house brands centered on fashion and living increased by 30% compared to the previous year, and the proportion of digital billings to total billings also increased.
Sales of the music division increased by 27.7% year-on-year to KRW 66.6 billion, and operating profit increased by 107.0% to KRW 12.9 billion. born through the program debut album and Sales of popular artists’ albums increased, with sales of repackaged albums showing brisk sales. , The global fandom of its own artists, such as others, has also expanded, leading to growth in global sales and profitability.
In the film division, operating losses continued due to a sales vacancy due to the absence of theater releases and musical performances and a decrease in supplementary rights sales. In the first quarter, it recorded 27 billion won in sales and 9.4 billion won in operating loss.
An official from CJ ENM said, “We will greatly expand world-class IP through joint planning and co-production of multi-studio and collaboration with global partners. We will solidify our growth.”
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