CJ CGV Posts Record Third-Quarter Operating Profit on Special Formats and Subsidiaries
CJ CGV reported a third-quarter operating profit of 73.6 billion won (50.3 billion won higher than a year earlier), the highest third-quarter figure since 2016, as its domestic theater business returned to the black and growth at CJ 4DPLEX and CJ Olive Networks added momentum, Prime Economy reported.
On a consolidated basis, the cinema chain posted revenue of 688.1 billion won, up 18% from the same period last year, and swung to a pre-tax profit, also its best third-quarter result since 2016.
Domestic Theaters Turn Profitable as Blockbusters Draw Crowds
CJ CGV’s domestic business generated 259 billion won in revenue, up 32% year over year, and 28 billion won in operating profit — a swing of 33.6 billion won into the black. Hollywood blockbusters and growing demand for premium formats drove the turnaround.
CGV | RECORD THEATER QUARTER Yonhap says CJ CGV booked a record quarterly operating profit of 736 billion won in the third quarter, up about 215 percent from a year earlier. Sales rose 18 percent to 688.1 billion won. Domestic ops swung to a 280 billion won profit after three… pic.twitter.com/On56mV6lwc
The share of domestic moviegoers choosing technology-focused premium screens — SCREENX, 4DX and IMAX — rose to 18.1% in the third quarter, up from 6.7% in the third quarter of 2019.
SCREENX and 4DX Outpace the Global Box Office
CJ 4DPLEX recorded revenue of 42.5 billion won, up 25%, and operating profit of 9 billion won, up 5.5 billion won from a year earlier. Global expansion of SCREENX theaters and the success of “Spider-Man: Brand New Day” contributed to the gains.
Combined global box-office revenue for SCREENX and 4DX reached $204 million, up about 33% year over year, while the two formats’ combined revenue rose from 31.4 billion won to 37.1 billion won. “Spider-Man: Brand New Day” surpassed the previous SCREENX and 4DX record set by “Avatar: The Way of Water” in both formats.
China and Turkey Lead Overseas Recovery
Overseas theater operations showed marked improvement in China and Turkey. In China, revenue rose 12.3% to 80.1 billion won and operating profit increased 4.5 billion won to 6.6 billion won, even as the country’s overall box office declined; CGV credited summer-season content and a higher share of premium-format viewers for lifting its box office and market share there.
In Turkey, the “Odyssey” hit and cost efficiencies pushed the business back to profitability: revenue climbed 38.5% to 41.4 billion won, and operating profit improved by 12.2 billion won to 4.6 billion won. Vietnam posted 63.1 billion won in revenue and 7.7 billion won in operating profit, staying profitable despite a slight revenue dip due to the base effect of last year’s local hit “Mua Do.” Indonesia, hit by economic slowdown and volcanic activity, recorded 24 billion won in revenue and 3.5 billion won in operating profit, holding profit at last year’s level through cost restructuring.
CJ Olive Networks Grows on AI and Logistics Contracts
CJ Olive Networks extended its growth streak, with revenue up 9.7% to 224.2 billion won and operating profit up 1.4 billion won to 16.5 billion won. New orders in AI factories and logistics, VFX and media AI, and higher transaction volume on data and marketing platforms drove the increase.
December Slate Sets Up Fourth Quarter
CJ CGV expects the growth trend to continue into the fourth quarter, citing December releases including “Avengers: Doomsday” and “Dune: Part Three,” while CJ 4DPLEX plans to expand SCREENX and 4DX screens through major contracts with global theater operators, open a new SCREENX LED theater at Yeouido and renovate existing SCREENX venues, and push content acquisition, non-screening revenue and operational efficiency country by country overseas.
CJ CGV CEO Jung Jong-min said the third quarter marked the best third-quarter result since 2016 thanks to improved domestic theater performance, CJ 4DPLEX’s global growth and CJ Olive Networks’ AX expansion, adding that the company will keep raising profitability through the global spread of SCREENX and 4DX and stronger competitiveness at home and abroad.
Questions Readers Ask About CJ CGV’s Third Quarter
Which premium format is driving the most growth? SCREENX and 4DX together generated $204 million in global box office in the third quarter, up about 33% from a year earlier, and “Spider-Man: Brand New Day” broke the formats’ previous record held by “Avatar: The Way of Water.”
Did every overseas market improve? No. Vietnam’s revenue dipped slightly because of the base effect from last year’s local hit “Mua Do,” and Indonesia saw fewer visitors due to economic slowdown and volcanic activity, though both stayed profitable.
What releases could extend the momentum into year-end? CJ CGV pointed to December titles including “Avengers: Doomsday” and “Dune: Part Three” as the basis for its fourth-quarter outlook.