
Sales increased by 18% to KRW 688.1 billion... Domestic business turns into surplus
CJ CGV recorded an operating profit of KRW 73.6 billion, the highest ever on a quarterly basis, thanks to its domestic business turning into a surplus in the third quarter of this year and the popularity of special theaters.
AI-generated summary
CJ CGV achieved improved performance in the third quarter thanks to the success of special theaters and the recovery of domestic business.
Sales increased by 18% to KRW 688.1 billion... Domestic business turns into surplus
(Seoul = Yonhap News) Reporter Park Won-hee = CJ CGV achieved its highest ever quarterly operating profit in the third quarter of this year, thanks to the domestic business sector's turn to surplus and the popularity of special theaters such as ScreenX.
CGV announced on the 6th that its consolidated operating profit in the third quarter was KRW 73.6 billion, an increase of 215.2% (KRW 50.2 billion) from the same period last year, recording the highest ever for the previous quarter.
Operating profit before corporate tax (pre-tax profit) turned into a surplus at KRW 38.4 billion, the highest since 2016 in the third quarter.
Sales amounted to KRW 688.1 billion, an increase of 18.0% (KRW 105 billion) compared to the same period last year.
By sector, the operating profit of the domestic business turned into a surplus at KRW 28 billion, contributing to performance. It recorded a surplus again for the first time in three quarters since the fourth quarter of last year.
Hollywood blockbusters such as 'Odyssey' and 'Spider-Man: Brand New Day' (hereinafter referred to as 'Spider-Man 4') were box office hits mainly in special theaters such as IMAX, ScreenX, and 4DX, leading to improved profitability. The proportion of special theater audiences in the total audience of domestic CGVs increased from 6.7% in the third quarter of 2019 to 18.1% in the third quarter of this year.
Domestic business sales amounted to 259 billion won, an increase of 32.0% (62.8 billion won) compared to the same period last year.
CJ 4DPLEX, a CGV subsidiary that operates a special technology theater, saw its operating profit increase by 157.1% (KRW 5.5 billion) to KRW 9 billion. Sales increased by 25.0% (KRW 8.5 billion) to KRW 42.5 billion.
CGV explained that the expansion of Screen 'Spider-Man 4' was produced as a 'Shot for SCREENX' work that expanded the screen to four sides, including the screen, both sides, and the ceiling, for the first time in Hollywood and was screened on ScreenX.
System operator CJ OliveNetworks recorded sales of KRW 224.2 billion and operating profit of KRW 16.5 billion, up 9.7% (KRW 19.9 billion) and 9.3% (KRW 1.4 billion) from the same period last year, respectively, thanks to increased orders for artificial intelligence (AI)-related business.
CGV predicted that the growth of domestic and overseas theater business and special theaters will continue in the fourth quarter thanks to anticipated films such as 'Avengers: Doomsday' and 'Dune: Part 3', which will be released next month.
CGV CEO Jeong Jong-min said, "We will continue to increase profitability through the global expansion of technology special theaters such as ScreenX and 4DX and strengthening the competitiveness of the domestic and overseas theater business."
AI outlook — possibilities, not facts
Growth in domestic and overseas theater business and special theaters continued in the fourth quarter
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