1. CJ ENM Q1 2025 Earnings: What Happened?

CJ ENM reported Q1 2025 revenue of KRW 1.31 trillion (up 4.8% YoY), operating profit of KRW 28.6 billion (down 18.5% YoY), and net profit of KRW 126 billion (turning to profit). Revenue exceeded market expectations, but operating profit fell short, painting a mixed picture. Music and commerce showed robust growth, while film/drama and media platforms struggled.

2. Reasons for Underperformance: Why These Results?

The film/drama division saw its losses widen due to a sluggish content market and high production costs. The media platform division faced declining revenue due to intensified competition in the OTT market and a shrinking advertising market. In contrast, the music division achieved high growth thanks to the global popularity of K-pop, and the commerce division maintained stable growth.

3. Future Outlook and Investment Strategy: What’s Next?

CJ ENM is focusing on strengthening its digital platform competitiveness through the global expansion of TVING, reinforcement of Mnet Plus, and expansion of mobile live commerce. Investments in next-generation content production technologies such as virtual studios, XR, and metaverse are also underway. However, high debt ratios and intensifying competition remain risk factors.

  • Short-term Investment Strategy: The return to profitability may lead to a short-term rebound in stock price, but investors should closely monitor improvements in the fundamentals of core businesses.
  • Long-term Investment Strategy: Continuous monitoring of profitability improvements in the content business, digital platform growth, and financial soundness management is crucial.