CJ CGV Posts 593.9 Billion Won in Sales, 11.5 Billion Won in Operating Profit in Q2

CJ CGV announced on the 7th that it recorded consolidated sales of 593.9 billion won, an operating profit of 11.5 billion won, and a pre-tax profit of 9.0 billion won for the second quarter of this year, turning a profit.

This performance is the result of a significant improvement in profitability, with sales increasing 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.

Looking at the detailed performance, CJ 4DPLEX recorded sales of 46.9 billion won and an operating profit of 8.3 billion won. Driven by the global expansion of specialized technology theaters such as SCREENX and 4DX, and the box office success of global hits like "The Super Mario Galaxy" and "Toy Story 5," sales increased by 56% and operating profit surged by 260% compared to the same period last year. In particular, the North American market recorded its highest box office performance for the first half of the year, materializing global business achievements.

Domestically, the company posted sales of 166.0 billion won and an operating loss of 6.2 billion won. Bolstered by the recovery of the film market, the box office success of Korean films such as "The Colony" and "Salmokji," the government's distribution of movie ticket discount coupons, and improvements in the domestic business structure, sales rose 17% year-on-year, while the operating loss narrowed by 11.1 billion won compared to the same period last year, maintaining a recovery trend.

In Vietnam, backed by the box office success of its distributed content, the company recorded sales of 64.0 billion won and an operating profit of 7.4 billion won. In Indonesia, despite a market contraction due to the timing shift of the Lebaran holiday, CJ CGV maintained a profitable stance with sales of 25.8 billion won and an operating profit of 4.1 billion won, leveraging differentiated business strategies.

In Türkiye, boosted by the popularity of foreign films like "Obsession" and "Toy Story 5," sales increased by 36% year-on-year to 39.7 billion won, with an operating loss of 4.1 billion won. In China, an increase in audience numbers driven by local content success led to sales of 45.8 billion won and an operating loss of 11.9 billion won.

CJ OliveNetworks posted sales of 254.5 billion won and an operating profit of 20.0 billion won. Driven by the expansion of AX (AI Transformation) businesses such as next-generation ERP and AI factories, as well as the growth of service platforms, sales increased by 29% year-on-year, while operating profit grew 16% through cost efficiency.

CJ CGV expects to maintain its growth momentum in the second half of the year based on the release of global blockbusters and strengthened competitiveness in specialized technology theaters. CJ 4DPLEX plans to accelerate global Big Deal contract results and continue expanding SCREENX and 4DX screens worldwide. It aims to further strengthen its competitiveness in specialized technology theaters through highly anticipated global works such as Hollywood's first "Shot for SCREENX" film, "Spider-Man: Brand New Day," and director Christopher Nolan's "The Odyssey."

Domestically, the recovery of the film market is expected to continue, supported by the release of Korean films and highly anticipated Hollywood titles such as "Hope," "Spider-Man: Brand New Day," and "The Odyssey." In addition, CGV plans to continuously renovate specialized technology theaters and key anchor locations to expand differentiated movie-viewing experiences. CGV Yongsan I'Park Mall completed the renovation of its SCREENX theater last July, further enhancing its specialized technology theater competitiveness. Following its first renovation since opening, CGV Yeouido plans to introduce the world's first 3-sided LED SCREENX theater in the second half of the year to elevate the premium movie-viewing experience.

In Vietnam, the company expects to expand business synergies by strengthening its content production, investment, and distribution capabilities, as well as enhancing content sourcing competitiveness. In Indonesia, it plans to continue its differentiation strategy by expanding specialized technology theaters such as SCREENX PLF, strengthening membership programs, and securing ONLY content. In Türkiye, CJ CGV aims to improve profitability through cost efficiency and enhanced content competitiveness, while in China, market expansion is anticipated with the release of major local summer blockbusters.

CJ OliveNetworks plans to sustain its growth momentum by expanding new orders in the Smart Space sector (AI factories and VFX studios) and scaling up its Enterprise AX business based on AI Native technology.

Jung Jong-min, CEO of CJ CGV, said, "As the global investment results of CJ 4DPLEX began to materialize in earnest, combined with the recovery of the domestic film market, we achieved a turnaround to a pre-tax profit in the second quarter. In the second half, we will continue to enhance both profitability and growth potential by expanding our global specialized technology theater business, scaling up CJ OliveNetworks' AX business, and strengthening the competitiveness of our domestic theater operations."

(Photo: Yonhap News / Reported by Kim Ji-hye from SBS Yeongae News)
※ Please note: This article was translated by AI and may contain errors.