CJ ENM's film and drama unit swings to profit after years of losses

CJ ENM's film and drama division swung to a profit of 12.9 billion won ($9.61 million) in the third quarter of this year, ending a prolonged streak of losses. The company plans to sustain the momentum in the fourth quarter with upcoming titles including "100 Days of Lies" and "My Guilty Person."

The turnaround comes after years of stumbles that seemed at odds with CJ ENM's reputation as one of South Korea's premier entertainment companies. Its share price, which once approached 300,000 won, fell below 30,000 won in July.

According to industry sources, CJ ENM's film and drama division posted a cumulative operating profit of 12.9 billion won for the third quarter of this year, on a preliminary basis. The result marks a reversal after consecutive annual losses — 97.5 billion won in 2023, 41.3 billion won in 2024 and 1 billion won last year — and a further 2.6 billion won loss in the first half of this year.

CJ ENM is widely regarded as one of South Korea's leading content companies, yet its share price has been in steep decline since the late 2010s. After approaching 300,000 won in 2018, the stock slid sharply as the company failed to produce a major hit following "Parasite." It bottomed out at 28,100 won on July 1.

The box-office failure of "Tazza: The Song of Belzebub," a film that had generated considerable internal excitement, dealt a further blow to the company's film business. At the time, shareholders vented their frustration online, with comments such as "just cut your losses and get out" and "there's no hope."

The third quarter of this year has now given the content division a chance at a comeback.

CJ ENM attributed the improved profitability to supplying the Netflix original "Slowly, Intensely" and expanding pre-sales of titles including "Four Hands" and "See You at Work Tomorrow" to global OTT platforms. In July, the company also signed a content partnership with Amazon Prime Video India, broadening its global distribution network.

CJ ENM said it intends to keep the content division in the black through the fourth quarter, pinning its hopes on "100 Days of Lies," "My Guilty Person" and "Paradise Lost."

The company said tvN's "100 Days of Lies" has been performing well in both viewership ratings and buzz, while "My Guilty Person" has held the No. 1 spot in its time slot, demonstrating strong commercial results.

CJ ENM added that it plans to sustain the momentum with director Yeon Sang-ho's film "Paradise Lost," which opened in October, followed by premium content including "Gift" in December.

Meanwhile, CJ ENM recently filed a preliminary disclosure showing cumulative sales of around 3.72 trillion won and operating profit of around 57 billion won through the third quarter of this year, on a consolidated basis.