In This Article:
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Annual Revenue: KRW5.2314 trillion, reflecting a 19.8% growth.
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Operating Profit: KRW104.5 billion, marking a successful turnaround.
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Entertainment Division Revenue: KRW3.78 trillion with operating profit of KRW21.3 billion.
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Commerce Division Revenue: KRW1.4514 trillion with operating profit of KRW83.2 billion.
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Studio Dragon Annual Revenue: KRW550.1 billion with operating profit of KRW36.4 billion.
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Studio Dragon Q4 Revenue: KRW130.6 billion with operating profit of KRW5.4 billion.
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Mobile Live Commerce Growth: Transaction volumes increased from KRW140 billion in 2022 to approximately KRW320 billion in 2023.
Release Date: February 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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CJ ENM Co Ltd (XKRX:035760) achieved a successful turnaround in 2024 by focusing on profitability despite a downturn in the upstream industry.
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The company plans to continue its profit turnaround in 2025 with strategic initiatives such as content growth, global expansion, and digital platform reinforcement.
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CJ ENM's entertainment content achieved high viewership ratings, with 'Queen of Tears' setting a record in TV and drama history.
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The Commerce division transitioned to a growth-oriented model, achieving significant growth in mobile live commerce with a 2.3 times increase in transaction volumes from 2022 to 2023.
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CJ ENM aims to expand its global subscriber base and brand recognition through TVING's international expansion, targeting 15 million subscribers globally by 2027.
Negative Points
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The challenging media environment in 2024 negatively impacted drama production, resulting in a 40.4% decline in the annual lineup for Studio Dragon.
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CJ ENM faced a stagnant domestic retail market with zero growth in 2024, posing challenges for the Commerce division.
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The company experienced impairment losses amounting to KRW24.7 billion, affecting profit numbers despite revenue growth.
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The merger between TVING and Wavve raised concerns about the actual synergy effect due to shareholder attrition.
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CJ ENM's accumulated loss over the decade amounts to about KRW1 trillion, with leverage snowballing to around KRW1.7 trillion, raising concerns about financial sustainability.
Q & A Highlights
Q: Can you provide an update on the LiveCity project and its financial implications? A: Deuk-su Hwang, CFO, explained that borrowings related to the LiveCity project stood at KRW380 billion, with KRW200 billion maturing in 2025. Losses from the project have already been reflected in the financials, and no further losses are expected.