In This Article:
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Consolidated Revenue: 1.1246 trillion won, a 1.2% year-over-year increase.
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Operating Profit: 15.8 billion won, an increase of 113.8% year-over-year.
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Net Loss: 531.4 billion won due to one-off events including loss on disposal of P/E and contract nullification.
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Entertainment Revenue: 790.7 billion won with an operating profit of 6.7 billion won.
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Commerce Revenue: 333.8 billion won with an operating profit of 9.2 billion won.
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Studio Revenue: 90.3 billion won with an operating loss of 900 million won.
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Corporate Tax: 130.5 billion won.
Release Date: November 07, 2024
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 1.2% year-over-year increase in consolidated revenue for Q3 2024, reaching 1.1246 trillion won.
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Operating profit saw a significant increase of 113.8%, indicating improved profitability.
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The company experienced strong global demand for Korean content, with successful simultaneous global airing of dramas and entertainment programs.
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CJ ENM Co Ltd (XKRX:035760) is focusing on expanding its business models and entering new markets, leveraging its strong domestic market position.
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The company reported a growth in its paying subscriber base by 55% year-over-year, contributing to revenue growth.
Negative Points
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CJ ENM Co Ltd (XKRX:035760) recorded a net loss of 531.4 billion won due to one-off events, including a loss on disposal of assets related to the Life City contract.
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The media and content producing industries faced difficulties, with sluggish presales of new titles and slow library sales.
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The company experienced an operating loss in its TV segment, with a recorded loss of 7.1 billion won.
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The music division's operating profit did not match its revenue growth, attributed to higher production costs and underperformance of certain TV shows.
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Studio Dragon reported a decrease in aired episodes by 21% year-over-year, leading to an operating loss of 900 million won.
Q & A Highlights
Q: Is the loss impact from the Life City contract cancellation over, or will there be more numbers reflected in the future? A: The disposal of tangible assets related to Life City amounts to 320 billion Korean won, with additional losses from assets and construction totaling 260 billion won. We do not foresee any large amounts being reflected in our books going forward, although minor changes could occur due to potential legal actions.
Q: Can you provide revenue and operating profit numbers for the fifth season, and how do you foresee things unfolding in Q4? A: Revenue for the fifth season was 108.4 billion won with an operating loss of 23.2 billion won. The delay in the delivery of "Seven Season 2" impacted our numbers, but we expect revenue recognition in Q4 with its delivery.