CJ CGV announced on the 8th that its consolidated revenue for the first quarter of this year was 533.6 billion won, and its operating profit was 3.2 billion won. Revenue increased by 35.8% compared to the same period last year, while operating profit decreased by 29.5%.
CJ CGV explained that it continues to maintain profitability due to growth in global markets such as China and Vietnam and the growth of CJ Olive Networks' business. However, operating profits decreased compared to the same period last year due to market contractions in Korea and Indonesia.
In detail, in China, the recovery of the Lunar New Year market led to revenue of 105 billion won and operating profit of 18.9 billion won. "Detective Chinatown 2" broke the record for the highest box office in China, and local content succeeded at the box office, achieving the highest quarterly operating profit ever.
In Vietnam, revenue was 76.8 billion won and operating profit was 12.9 billion won, achieving the highest quarterly operating profit ever. During the Lunar New Year season, local comedy content such as "Bo Tu Bao Than" and "Nu Hon Bac Ty" succeeded at the box office, leading to growth in both revenue and operating profit.
CJ Olive Networks recorded revenue of 188.9 billion won and operating profit of 8.6 billion won, continuing its growth trend due to strengthened external new order activities. The influence of smart logistics and retail technology, as well as next-generation system construction projects, also improved profitability.
On the other hand, there are areas that continued to incur losses or turned to losses. CJ CGV has been continuing to incur losses in Korea, where the absence of hit films led to first-quarter revenue of 128.3 billion won and an operating loss of 31 billion won.
In Indonesia, revenue was 17.2 billion won and an operating loss of 1.3 billion won was recorded due to the off-peak season during Ramadan and a lack of local content. In Turkey, revenue was 38.5 billion won, and an operating loss of 500 million won was recorded, turning to a loss.
CJ 4DPLEX signed a contract with theater chain AMC, recording revenue of 26.5 billion won; however, it turned to a loss, recording an operating loss of 900 million won.
CJ CGV plans to continue its growth trend in the second quarter by improving domestic business structure, fostering global growth for CJ 4DPLEX, and strengthening local content lineups in various countries.
Jeong Jong-min, CEO of CJ CGV, noted, "As the global market centered around China and Vietnam shows signs of recovery, we will continue to improve our business structure in Korea to enhance our fundamentals" and added, "This year, we will accelerate the growth of CJ 4DPLEX's SCREENX and 4DX global expansion, diversify our business portfolio, and continue our growth."