CJ CGV continued its operating profit growth into 2024 based on technological capabilities and self-help efforts.
CJ CGV reported on the 7th that it recorded 1.9579 trillion won in revenue and 759 million won in operating profit, an increase of 268 million won (54%) compared to the previous year. The growth of the technology special theater ScreenX is accelerating after the COVID-19 pandemic, expanding globally and enhancing profitability, influenced by the growth of the Southeast Asian film markets in Vietnam and Indonesia. The performance of CJ Olive Networks, which was newly integrated since June last year, also had a positive impact.
Domestically, it recorded 758.8 billion won in revenue and an operating loss of 7.6 billion won. In the first half of the year, 'The Disappearance' and 'The Outlaws 4' surpassed 10 million viewers, resulting in increased attendance. However, a lack of hit films in the second half left a disappointment as the overall film market contracted. Due to the market contraction, revenue decreased compared to the previous year and operating profit turned to a deficit, but the growth of non-screening businesses such as concessions and advertising helped reduce the deficit. Through strengthening special technology theaters and boosting marketing, CGV attendance increased by 7.4% compared to last year.
CJ 4Dplex achieved its highest-ever operating profit of 174 million won with revenue of 123.2 billion won. Overseas, ScreenX revenue increased by 70% compared to the previous year, and profitability improved through a strengthened content lineup.
In China, it recorded 251.9 billion won in revenue and an operating loss of 16.1 billion won. The overall economic recession and lack of hit films in China led to the deficit. In Vietnam, bolstered by the success of local productions and growth in the film market, it recorded 207.2 billion won in revenue and 26.3 billion won in operating profit.
In Indonesia, it recorded 101.4 billion won in revenue and 12.7 billion won in operating profit. Amidst film market growth centered on local and alternative content, revenue and operating profit increased due to strengthened concession business through the introduction of special technology theaters and expansion of K-menu. In Turkey, despite a decrease in audience numbers, increased revenue from the concession and advertising sectors and efficiency in fixed costs resulted in revenue of 154.7 billion won and an operating profit of 3.7 billion won.
CJ Olive Networks, which was newly integrated in June last year, recorded 776.2 billion won in revenue and 58.2 billion won in operating profit, contributing 483.3 billion won in revenue and 43.3 billion won in operating profit to CGV's overall results. CJ Olive Networks continues to grow through the expansion of external contracts, including the establishment of next-generation IT systems, smart studios, and smart logistics automation.
CJ CGV plans to continue its growth into 2025 by expanding ScreenX technology special theaters focusing on strategic countries, following the release of Hollywood blockbusters such as 'Mission: Impossible - Final Reckoning' and 'Avatar: The Way of Water,' and improving its revenue structure.