Q2 2026 CJ ENM Co Ltd Earnings Call
Speaker #1: Blue team, the highly successful groups of the past—101 and IOI. Furthermore, while the new one is on the Apple Music Top 200, the group 'Koike,' selected through this process, is said to debut in the second half of the year and is expected to contribute to Lapona's earnings alongside existing artists such as JL1 and INI.
Speaker #2: 다음으로 플랫폼에 대해 말씀드리겠습니다. 먼저 티빙의 경우, 디지털 전환을 위한 플랫폼 기반 확장이 순조롭게 이어지고 있습니다. KBO와 오리지널 콘텐츠 흥행에 힘입어 가입자가 지속적으로 증가하는 가운데, MAU가 970만 명을 기록하는 등 고객 기반 성장이 지속되었습니다.
Speaker #2: 광고 매출은 전년 대비 52% 증가하면서 고성장세를 이어갔습니다.
Speaker #1: Next, on the platforms: In the case of TVing, platform-based expansion for digital transformation is well underway. Driven by the success of KBO and original content, the number of subscribers continues to increase, and customer base growth has continued, too, with MAU recording 9.7 million.
Speaker #1: Advertising revenue continued its high growth trend, increasing by 52% by Q2.
Speaker #2: 핸드플러스는 글로벌 팬덤 트래픽을 콘텐츠 시청과 참여를 넘어 유료 소비로 연결하는 플랫폼으로 진화하고 있습니다. 오리지널 RP101 곡 콘텐츠 패스 등 유료 콘텐츠 비즈니스 모델과 RB1 일본 팬클럽을 론칭하는 등 디지털 팬덤 사업 본격화, 그리고 팬터랙티브 기능 강화를 통해 엠대플러스 매출이 167%의 고성장세를 이어갔습니다.
Speaker #1: Mnet Plus is evolving into a platform that connects global fandom traffic beyond content viewing and engagement to paid consumption. Through the strengthening of fan interactive features, such as paid content business models like the original IP 101 Goal, content paths, and the earnest launch of digital fandom business including ALD1 Japan fan club, Mnet Plus revenue continued its high growth rate of 167%.
Speaker #2: 토마스 사업은 모바일 라이브 커머스의 고성장이 지속되는 가운데, 고객 기반도 꾸준히 확대되고 있습니다. 숏폼 콘텐츠와 라이브 방송, 크리에이트 커머스를 유기적으로 연계해 외부 플랫폼의 트래픽 유입을 확대하고, 이를 실제 상품 구매로 전환해 가면서 모바일 라이브 커머스 취급고뿐만 아니라 앱 다운로드와 MAU가 함께 성장하는 등 모바일 중심의 플랫폼 전환이 가속화되고 있습니다.
Speaker #1: From mid to sustained high growth of mobile live commerce, the commerce business is steadily expanding its customer base. By organically integrating short-form content, live broadcast, and creator commerce to increase traffic from external platforms and convert it into actual product purchases, the transition to a mobile-centric platform is accelerating.
Speaker #1: Consequently, not only is the transaction volume of mobile live commerce increasing, but the number of app downloads and monthly active users is also rising.
Speaker #2: CJ ENM은 이러한 콘텐츠 플랫폼에서의 경쟁력 강화를 지속해 나갈 것이며, 이를 통해 하반기 이후에도 매출 성장과 수익성 개선을 목표로 노력하겠습니다. CJ ENM과 함께해 주신 주주 및 애널리스트 여러분께 감사드리며, 이상 발표를 마치겠습니다.
Speaker #1: CJ ENM will continue to strengthen its competitiveness in the content and platform sectors, and through this, we will strive to achieve revenue growth and improve profitability in the second half of the year.
Speaker #1: We would like to thank our shareholders and analysts for their support of CJ ENM. This concludes my presentation.
Speaker #3: 다음은 실적 발표입니다. CJ ENM 실적 발표의 주요 재무제표는 K-IFRS 기준 연결 실적이며, 사업별 구분 영업이익은 내부 거래가 제거되지 않은 손익입니다. 그럼 2026년 2분기 전사 경영 성과 발표가 있겠습니다.
Speaker #1: Next are the company's results. CJ ENM's results are based on K-IFRS consolidated numbers, and divisional operating results have not carved out internal transactions. Now, the company's Q2 2026 results.
Speaker #2: 2026년 2분기 실적에 대해 말씀드리겠습니다. 매출액은 1조 2,033억 원으로 전년 대비 8% 감소했으며, 영업이익은 334억 원으로 전년 대비 17% 증가했습니다. 연결 조정 반영 전 기준으로 사업별 영업이익 증감 내역을 설명드리겠습니다.
Speaker #2: 엔터 사업은 5th Season TV 시리즈 딜리버리 차질 및 음악 휴먼 IP 플랫폼 투자 영향에도 티빙 매출 성장 지속 등의 힘입어 이익이 증가했습니다. 커머스는 모바일 라이브 커머스의 고성장 지속과 카테고리 믹스 최적화 등 전략적 상품 운영에 따라 외형과 수익성이 동반 성장했습니다.
Speaker #2: 5페이지부터 사업 부문별 성과와 2분기 전망을 말씀드리겠습니다.
Speaker #1: Next, I will discuss the earnings for the second quarter of 2026. Revenue was 1.2033 trillion KRW, a decrease of 8% year over year. Operating profit was 33.4 billion KRW, an increase of 17% year over year.
Speaker #1: I will now go over the changes in operating profit by business segment, based on figures prior to consolidation adjustments. The Entertainment business saw profit growth driven by factors such as continued revenue growth from TVing, despite disruptions in the 5th Season TV series, as well as the impact of investment in music, HIP, and platform.
Speaker #1: The commerce business achieved growth both in revenue and profitability due to the sustained high performance of mobile live commerce and strategic product operations, including category mix optimization.
Speaker #1: Starting from page 5, I will present the performance by business segment and give you the outlook for the second quarter.
Speaker #2: 비디오 플랫폼에서는 TV 광고 시장 업황 위축이 지속된 가운데, 월드컵 시즌에 따른 판별적 광고 집행 영향으로 TV 광고 매출이 역성장했으나 KBO 및 오리지널 흥행에 따른 티빙 가입자 순증 지속, 디지털 광고 매출 고성장과 함께 브랜드관 등 해외 판매 매출 호조가 실적 증가를 이끌었습니다.
Speaker #2: 하반기에 티빙은 콘텐츠 수급 등 비용 부담이 다소 증가하겠으나, 오리지널 드라마, 앵커, 예능을 기반으로 가입자와 시청량을 지속적으로 확대하고, 특히 4분기의 KBO 포스트 시즌과 성수기 광고 매출 확대를 통해 대응하겠습니다.
Speaker #2: 채널의 경우, 핵심 IP를 중심으로 광고주 맞춤형 통합 광고 상품 캠페인을 강화하는 한편, 콘텐츠 제작과 광고 부문 간의 협업 강화 및 AI 기반 광고 상품 확대 등을 통해 협찬 매출을 추가 확보하며 수익성을 제고할 계획입니다.
Speaker #1: While TV advertising revenue experienced negative growth in the media platform sector due to the continued contraction of the market and selective advertising execution during the World Cup season, earnings were driven by sustained net TVing subscriber growth with the success of KBO and original content, high growth in digital advertising revenue, and robust overseas sales, including the branded zone.
Speaker #1: Though TVing is expected to face a slightly increased cost in the second half of the year due to content procurement, we will respond by continuously expanding subscribers and viewership based on original dramas and anchor non-scripted formats, and specifically by maximizing advertising revenue during the KBO postseason and peak season in the fourth quarter.
Speaker #1: For channels, the company will strengthen advertiser-tailored bundled ad product campaigns, centering on core IPs and stronger cooperation between content production and the advertising business, as well as expansion of AI-based advertising products to secure more advertising sales and improve performance.
Speaker #2: 통화 드라마는 콘텐츠의 해외 로컬 플랫폼형 매출 증가와 브랜드관 매출의 견조한 성장, 예능 해외 판매 및 제작비 효율화 성과 등에도 불구하고 5th Season의 드라마 시리즈 딜리버리 공백 영향이 작용하면서 전반적인 실적이 감소했습니다.
Speaker #2: 하반기에는 일본, 동남아, 북미 등 기존 주력 시장을 대상으로 하는 볼륨들과 개별 판매를 강화하는 동시에, 인도, 중동, 남미 등 신규 로컬 시장 파트너십 추가 발굴하겠으며, 글로벌 OTT와 지상파 방송사 대상 드라마와 예능 공급을 확대하는 등 앵커 IP를 기반으로 해외 판매 경쟁력 강화를 지속하겠습니다.
Speaker #1: Overall performance in the film and drama sector declined, despite local platforms and robust growth in brand film. Overseas sales of non-scripted formats and production cost efficiency improvements were offset due to the impact of the delivery gap in drama series from 5th Season.
Speaker #1: In the second half of the year, we will continue to strengthen our competitive strength in overseas sales based on anchor IPs by reinforcing volume deals and individual sales in existing key markets such as Japan, South Korea, and North America, while simultaneously seeking out new partnerships in local markets including India, the Middle East, and South America, and expanding the supply of dramas and variety shows to global OTT platforms and terrestrial broadcasters.
Speaker #2: 음악은 오디세이의 데뷔 앨범 판매가 호조였던 가운데, INI 재배원 시즌 2 등 기존 아티스트와 신규 아티스트들의 활동에 따라 매출이 견조하게 성장했습니다. 엠넷플러스 성장 및 신규 아티스트 데뷔를 위한 투자 비용이 증가했으나, 알디원 팬콘 투어, 제이오원 봄 투어, 케이콘 재팬 등 글로벌 라이브 이벤트를 통해 수익성을 일부 방어했습니다.
Speaker #2: 하반기에는 제이오원, INI 등 라포네 아티스트들의 음반 투어가 늘어나며, 호이티즈의 데뷔, 알디원 모디세이의 음반 발매 등 신규 후면 IP 활동이 본격화되며 성장 모멘텀이 두드러질 전망입니다.
Speaker #2: 또한, 스트릿 월드 파이트 디렉터스 워 흥행 및 KCON LA, MAMA 등 글로벌 이벤트 고도화와 함께 엠넷 플러스 앵커 IP, DM 다각화에 따른 경쟁력 강화를 이어가겠습니다.
Speaker #1: Music sector sales grew steadily, with strong performance from 모디세이's debut album and from the activities of both 5th and new artists such as INI and ZEROBASE1 Season 2.
Speaker #1: Although investment costs increased for the growth of 엠넷플러스 and the debut of new artists, profitability was partially supported by events such as 알디원 팬콘 투어, 제이오원 돔 투어, and 케이콘 재판.
Speaker #1: In the second half of the year, growth momentum is expected to become more pronounced, as album releases and tours by LAPONE artists like JO1 and INI increase, and activities of new human IPs—including the debut of Boy Kids, and album releases by RD1 and MODISY—enter full orbit.
Speaker #1: Furthermore, we will continue to strengthen our competitiveness through the diversification of Mnet Plus anchor IPs and business models, alongside the success of Street World Fighter Director's War and the advancement of global events such as KCON LA and MAMA.
Speaker #2: 통화 또는 숏폼 콘텐츠의 양적, 질적 확대를 통해 SNS 매출과 신규 고객 유입이 늘면서 모바일 라이브 커머스 치고 고성장세를 이어갔고, 프리미엄 여행과 키즈 카테고리가 견조한 성장세를 보임에 따라 매출이 증가했습니다.
Speaker #2: 이와 함께, 건기식, 뷰티 등 고수익 카테고리를 중심으로 탄성이 확대되면서 수익성 개선을 시현했습니다. 하반기에는 인플루언서 브랜드 등 온스타일 파트너와의 협업 체계를 구축하고, 크리에이터 커머스 모델 고도화를 통해 SNS로 유입되는 외부 고객을 확대하겠습니다.
Speaker #2: 또한, 차별화된 IP 협업과 멤버십을 통해 고객 유입과 충성 고객을 확대하는 한편, CRM 알림 고도화 등 고객 라긴 체계를 구축하여 고객 기반을 안정적으로 확장해 가겠습니다.
Speaker #2: 그 외 자세한 내용은 자료를 참고해 주시기 바랍니다.
Speaker #1: Sales increased in the commerce sector as mobile live commerce transaction volume continued its high growth trajectory, driven by increased social media sales and new customer acquisition through the quantitative and qualitative expansion of short-form content, as well as robust growth in the premium travel and kids categories.
Speaker #1: Simultaneously, we demonstrated improved profitability by expanding our programming centered on high-margin categories such as health supplements and beauty. In the second half of the year, the business will expand its external customer base by establishing a collaboration system with on-staff partners, including influencers and brands, and by further enhancing our creator commerce model.
Speaker #1: Additionally, we will steadily expand our customer base by increasing customer influx and loyalty through differentiated IP collaborations and membership programs, while building a customer lock-in system through advanced CRM and notification.
Speaker #1: For further details, please refer to the material. Thank you.
Speaker #3: 계속해서 스튜디오 드래곤 말씀드리겠습니다.
Speaker #1: Now we will hear from Studio Dragon.
Speaker #4: 안녕하십니까, 스튜디오드래곤 셀프 이예민입니다. 2026년 2분기 경영 성과에 대해 말씀드리겠습니다.
Speaker #1: Good afternoon. This is CFO Lee Hyemi from Studio Dragon. I will report on our business performance for the second quarter of 2026.
Speaker #4: 2분기는 제작 효율화와 플랫폼 다각화, 주요 작품 흥행 성과를 바탕으로 어려운 환경 속에서도 성장 기조를 강화했습니다.
Speaker #1: In the second quarter, Studio Dragon strengthened our growth trajectory despite the challenging environment, based on the advancement of strategies such as production efficiency, content diversification, and the success of our major works.
Speaker #4: 3교육, 치사병, 전설이 되다, 유미의 세포들 3 등 주요 작품이 각 플랫폼에서 압도적인 성과를 기록했으며, 수익성 측면에서는 제작비 효율화와 판매 확대가 함께 반영되며 인기 개선으로 이어졌습니다.
Speaker #1: Major titles such as TGO Lesson, Legend of the Kitchen Soldier, and Yumi's Cells 3 recorded overwhelming performances across their respective platforms. In terms of profitability, the reflection of production cost efficiency and expanded sales led to improved earnings.
Speaker #4: 이에 따라 매출은 전년 동기 대비 26.9% 성장한 1,453억 원, 영업이익은 흑자 전환한 154억 원을 기록했습니다. 또한 영업이익률은 전년 동기 대비 13.2%p 개선된 10.6%로 수익성 회복 흐름을 확인하였습니다.
Speaker #1: Accordingly, revenue grew 26.9% year-on-year to 145.3 billion KRW, and operating profit turned positive at 15.4 billion KRW. Furthermore, the operating profit margin improved by 13.2 percentage points year-on-year to 10.6%, confirming a trend of profitability recovery.
Speaker #4: 아울러 2분기부터는 판권 내용 연출 기준을 변경해 분기별 실적 변동성을 낮추고, 예측 가능성을 제고하였습니다.
Speaker #1: In addition, starting from Q2, we changed the criteria for the useful life of intellectual property rights to reduce quarterly earnings volatility and enhance predictability.
Speaker #4: 하반기에는 제작 라인업과 선판매 확대를 기반으로 성장세를 지속해 나가겠습니다. 포핸즈, 백일의 거짓말, 삼선이 강렬하게 등 기대작을 통해 시청 영향력을 확대하고, IP 사업 확장과 제작비 효율화를 통해 대외 환경 변화에 대응하며, 본업의 이익 체력과 중장기 성장 기반을 함께 강화해 나가겠습니다.
Speaker #4: 감사합니다.
Speaker #1: In the second half, we will continue the growth momentum of our core business based on the lineup of titles and expanded pre-sales. We will expand our viewer influence through highly anticipated titles such as Forehands and Hundred Days of Deception.
Speaker #1: We will respond to changes in the external environment by expanding our IP business and optimizing production costs. We will simultaneously strengthen the profitability of our core business and our foundation for mid- to long-term growth.
Speaker #1: Thank you.
Speaker #3: 이상, 준비된 발표를 마치고 다음으로 Q&A 세션을 진행하겠습니다. 제한된 시간을 고려해, 질문은 가급적 핵심 사안 위주로 한 분당 3개 이내로 부탁드리겠습니다.
Speaker #1: We will now be moving on to your questions. Given the time constraint, please limit your questions to three per person, focusing on core issues.
Speaker #5: 지금부터 질의응답을 시작하겠습니다. 질문이 있으신 분들은 전화기 버튼의 별표(*)와 1번을 눌러 주십시오. 질문 신청을 최소화하시려면 별표(*)와 2번을 눌러 주시면 됩니다.
Speaker #1: Now, the Q&A session will begin. Please press asterisk 1 (*) if you have any questions. To cancel, please press asterisk 2 (*2).
Speaker #1: That is, asterisk N2 on your phone.
Speaker #5: 현재 질문을 요청하고 계신 분은 없습니다. 질문이 있으신 분들은 전화기 버튼의 별표와 1번을 눌러 주십시오.
Speaker #1: Currently, there are no participants with questions. Please press *1, *N1 to ask your question.
Speaker #5: 처음으로 질문해 주실 분은 하나증권의 2기훈 님입니다. 질문해 주십시오.
Speaker #1: The first question will be given by 이기훈 from Hana Securities. Please go ahead.
Speaker #6: 질문 기회 감사합니다. 저 세 가지가 있는데, 첫 번째는 TV 광고 업황이 당연히 상반기까지 좋지는 않았는데, 아까 말씀하셨지만 월드컵이 좀 아쉽게 빨리 끝나면서 체력이 조금, 월드컵 안 했던 채널들이 좀 반등이 있었는지가 궁금하고, 근데 이어서 JTBC의 상황이 좀 안 좋다 보니까 1년에 보단 1,800억 광고 매출을 하는 것 같더라고요.
Speaker #6: 거기가 얼마나 빠진다까지는 모르겠지만 4분기 넘어가면 기존 제작들이 다 많이 없어져 있을 테니까, 재방하다 보면 당연히 거기 광고가 좀 떨어질 수밖에 없잖아요. 이런 것들이 반사 수혜라고 말하기는 좀 그렇지만, 혹시 저희에도 좀 긍정적인 영향을 미칠 수 있는지 해서 하반기 TV 광고 업황 좀 먼저 말씀 좀 부탁드리고요.
Speaker #6: 두 번째는 비슷한 내용인데, TV웨이브가 사실 합병, 저희가 공동 대표 세임을 하고 있지만 표면적으로는 합병을 하기 위해서 KT의 이슈도 있지만, 지금 SLL이 결국 SI 이슈가 생겨버린 거라서 굉장히 좀 어렵게 보이긴 하는데, 저희 대책이 당연히 있지는 않겠지만 그래도 저희가 바라보는 뷰를 합병에 대해서 한 번 더 말씀해 주시면 감사할 것 같고, 마지막으로 아까 드래곤인데, 판권 상각 구체적으로 설명해 주실 수 있는지 그것도 말씀 부탁드리겠습니다.
Speaker #6: 이상입니다.
Speaker #1: Yes, I have three questions. First is on the TV ad business. In your presentation, you mentioned that you had some environmental or seasonal difficulties in the first half, due to low seasonality, and especially with the World Cup games.
Speaker #1: But since Korea was eliminated from the World Cup games rather earlier than anticipated, how did it impact your ad business? And I would also like to hear the impact from what happened with JTBC.
Speaker #1: Well, I am told that there won't be much production activity going on with JTBC after the fourth quarter. Could this actually be a positive factor for CJ ENM, as we may gain some of their ad revenue?
Speaker #1: So, could this possibly be a positive thing for the company? And, well, now my second question is on the merger between TVing and Wavve.
Speaker #1: I know that there are issues—the KT issue and the SI issue. So, could you please give us more color or some more information on how the integration work is going on?
Speaker #1: And my third question goes to Studio Dragon. You mentioned in your presentation the changes in the advertising method of your intellectual property. Could you give us more color on what's happening there?
Speaker #3: 안녕하십니까. 광고 쪽 말씀드리도록 하겠습니다. 지금 말씀 주신 것처럼 상반기 업황이 꽤 많이 부진했었는데요. 월드컵 이후에 저희가 예측하기로는 하반기에는 저희 ENM 당사만 보면 약 30% 이상의 상반기 대비 업셀링이 예상되고 있고, 그거에 대한 가장 큰 요인으로는 저희가 가지고 있는 방송 재원 이외에 디지털 재원, 5개 재원까지를 통합해서 제안하는 유일한 방송사가 저희라서, 그거에 대한 수혜를 많이 기대하고 있습니다.
Speaker #3: 또한 협찬에 대한 부분들도 저희가 역점을 많이 기울이고 있어서, 실제로 전년 대비 약 26% 정도 성장할 걸로 저희가 예상하고 있습니다.
Speaker #1: Yes. First, answering your advertising industry-related question, as you rightly mentioned, the first half of the year was a difficult half. But starting in the second half of this year, after the World Cup Games, we believe that things will see a turnaround.
Speaker #1: For the company CJ ENM, we do expect to see an upsell of over 30%. It's because we're the only entity that has a fully integrated lineup, from TV broadcasting advertisement to digital advertisement, and also including DOOH.
Speaker #1: And because of this integration, we expect to see better results for CJ ENM. We also have high expectations for sponsorships and PPLs. We expect to see about 26% growth on a year-over-year basis.
Speaker #3: JTBC와 관련해서는 저희가 이렇다 할 정확한 움직임을 말씀드리기는 좀 어렵지만, 실제로 8월부터는 JTBC 쪽에서의 매출 하향이 저희가 관측되고 있어서 아마 일정 부분들은 저희 당사뿐만 아니고 지상파로도 어느 정도 영향이 있을 것으로 예상이 되지만, 실제로 그 폭이 얼마나 될지는 아직까지는 예측하기 좀 어려워 보이고, 그거에 대한 영향으로 저희 쪽도 시장 내에서의 MS가 꾸준히 상승하고 있는 상황입니다.
Speaker #1: And now to your second point related to the disturbances at JTBC. Well, I cannot give you an exact answer to this question, but we are seeing some revenue decrease on the part of JTBC starting from the month of August.
Speaker #1: And it has influenced some of the terrestrial players, as well as the company. But as to how much or to what degree, I cannot give you a concrete answer today.
Speaker #1: But we are seeing some pick-ups in our market share.
Speaker #3: 그 TV웨이브 합병 관련해서.
Speaker #6: 네.
Speaker #3: 말씀을 드리겠습니다. 지금 KT와는 TVING이랑 광고, 콘텐츠 관련해서 다양한 협력 논의들을 하고 있고요. 이러한 협력 논의를 기반으로 해서 하반기에 TV웨이브 합병에 대한 본격 논의를 진행할 예정이고요.
Speaker #3: SLL도 KT와 논의하는 것과 연계해서, 이 부분에 대한 협의를 지속해 나갈 예정입니다.
Speaker #1: So to address your TVing and Wavve integration or merger-related question, we are currently discussing with KT on advertisement and content activities. I believe our discussions will enter into a fuller orbit starting in the second half.
Speaker #1: And by then, we will be sorting out how things go with SLL and the merger process.
Speaker #6: 판권 내용 연습 변경 관련해서 설명드리겠습니다. 기존에는 저희가 일반적인 드라마의 경우에는 18개월에 걸쳐서 제작비를 상각했고요. 그다음에 OTT 선판매가 되는 작품의 경우에는 6개월간 상각을 했습니다.
Speaker #6: 그런데 이 경우에는 이제 실제 매출이 발생하는 기간에 비해서 제작비를 상각하는 기간들이 좀 더 길었기 때문에 저희가 이제 이 변동성에 변동성이 높아지는 영향이 있었고요. 이번에 좀 더 실질 매출 발생 스케줄을 좀 반영해서 상각 기간을 좀 더 합리적으로 조정을 했다고 보시면 됩니다.
Speaker #6: 그래서 변경된 기준은, 일반 드라마의 경우 전체 48개월에 걸쳐서 상각을 하지만, 처음 7개월간에 64%, 대부분이 상각되는 구조로 가속 상각 방식을 채택하고 있고요. 그리고 OTT 선판매의 경우에는 기존 6개월 상각을 4개월 상각으로 단축시켰습니다.
Speaker #6: 이렇게 될 경우에는 애널리스트분들이나 투자자분들이 저희 실적을 예측하는 정확도도 좀 더 올라갈 것으로 보이고, 실제 매출이나 영업 활동과 관계없는 실적의 변동성이 좀 줄어들 걸로 기대하고 있습니다.
Speaker #6: 저희가 저번 1분기 같은 경우에는 지난해 4분기에서 넘어온 판권 상각 금액 때문에 실제 영업 활동과 상관없이 이익이 하락한 경향이 있었는데, 이런 부분들이 계속 이번 변경으로 완화될 수 있을 걸로 보입니다.
Speaker #1: Yes. Regarding your useful life amortization question, we have made adjustments to the useful life amortization process with our copyrights. For conventional dramas, it used to be 18 months of amortization for a production.
Speaker #1: Cost for OTT pre-sales: it was over six months, but it really did not reflect our revenue-generating period, as the amortization process was rather lengthier than the actual revenue-generating period.
Speaker #1: And because of this, there was some added volatility to our profit numbers. So we have made the necessary adjustments to more fully reflect the real revenue in our schedule.
Speaker #1: So for general dramas, it would be amortization of copyrights over 48 months, but it would be on an accelerated basis for the first 7 months.
Speaker #1: So, about 54% of the amortization will be done in the first seven months. So, it's an accelerated process. And for the pre-sales titles to the OTTs, the amortization period has been decreased from six months to four months, which will, of course, lead to more accurate predictability on the part of analysts and shareholders.
Speaker #1: And it will lessen the volatility associated with our numbers. For example, our Q1 numbers for this year, because of the spillover of amortization process from Q4 last year, our profit numbers were rather smaller than what you might have anticipated.
Speaker #1: And to address this situation, we have made the necessary adjustments to our amortization process.
Speaker #3: 다음 질문 받겠습니다.
Speaker #1: Next question, please.
Speaker #5: 현재 질문을 요청하고 계신 분은 없습니다. 질문이 있으신 분들은 전화기 버튼의 별표와 1번을 눌러주십시오.
Speaker #2: Currently, there are no participants with questions. Please press asterisk 1, asterisk 1 to ask your question.
Speaker #5: 다음으로 질문해 주실 분은 KB증권의 최용현 님입니다. 질문해 주십시오.
Speaker #2: The following question is from 최용현 at KB Securities. Please go ahead.
Speaker #4: 네, 안녕하세요. 저 KB증권 최용현입니다. 저 질문 세 가지 있습니다. 첫 번째로는 TVING이랑 오티티 시즌 2분기 실적 말씀 부탁드립니다. 그리고 두 번째로는 이제 아무래도 TVING 개인정보 관련된 이슈가 조금 궁금한데, 이게 재무적으로 어떤 영향을 미칠지 혹시 컬러를 주실 수 있는 게 있다면 말씀 부탁드리고요.
Speaker #4: 그리고 최근에 MAU 순위가 조금 하락했다는 기사를 본 것 같은데, 이런 개인정보 이슈가 실제 이용자 지표에 영향을 주고 있는지, 어떻게 해석하고 계신지 궁금합니다.
Speaker #4: 그리고 마지막으로는 저희가 이제 최근에 좀 주가가 많이 하락하면서 밸류에이션이 되게 낮은데, 정부에서 지금 하반기에 저 PBR 관련돼서 공표를 하겠다라고 얘기를 하는데, 이런 좀 낮은 밸류에이션을 극복하고자 저희가 대응하려고 하시는 방안이나 이런 게 있다면 소통 부탁드리겠습니다.
Speaker #1: Yes, I have three questions. The first is on the Q2 results for TVing and this season. My second question is on the recent information leakage of TVing.
Speaker #1: Well, will it really have a tangible financial result on TVing? And I recently saw that your MAU ranking has deteriorated somewhat. Privacy leakage or breach issue.
Speaker #1: And my third question is related to the company's overall share price. The valuation is quite low, and the stock price is underperforming. I've also heard that the government will soon be announcing something related to low PBR companies in the second half.
Speaker #1: So, do you have any measures to address the situation of share prices?
Speaker #3: I think around your first 2분기 실적 말씀드리겠습니다. 먼저 TVing 말씀드리겠습니다. TVing 2분기 매출액은 1,407억원이고요. 영업이익은 60억자 수준입니다. FS는 2분기 매출액이 504억, FS의 영업 손실은 80억 수준입니다.
Speaker #1: Yes. To address your first question related to the revenue and operating numbers for TVing in this season: in the second quarter, the revenue for TVing stood at 140.7 billion KRW, with an operating profit of 6 billion KRW.
Speaker #1: For Fifth Season, it was a revenue number of 50.4 billion, with an operating loss of 8 billion.
Speaker #4: 이슈 관련해 가지고 질문 주셨던 거 답변드리겠습니다. 저희 정보 유출 이슈랑 연계해 가지고 재무적으로 영향을 미칠 수 있는 요소는 최대한 두 가지로 뽑아볼 수 있을 것 같은데, 하나는 저희가 고객분들에게 내부적으로 준비하고 있는 무상안이 있을 수 있고요.
Speaker #4: 그리고 나머지 하나는 과징금과 과태료, 정부의 판단과 처분에 따라서 저희한테 부과될 과징금과 과태료 규모가 저희한테는 재무적인 영향으로 이어질 수 있을 것 같습니다. 이 보상안과
Speaker #1: People in control down in the impact, MoU, MoU in original content. 3 p.m., original content in. Impact MoU on student.
Speaker #2: Now, on to your second question related to the privacy breach issue. Well, there could be two impacts on our financials because of the privacy or information breach incident. First, it would be our compensation package to the customers, that we could come up with a compensation package.
Speaker #2: And that could lead to some financial impact . The second impact that we could feel on the financial term would be the penalty in fine imposed by the government , according to their decision , and currently on the first part , which is the compensation by the company , we are currently working on it to develop a compensation package .
Speaker #2: The information could be given out to the market , probably by September or October . We will be making sure to communicate the message to the market and in coming up with compensation to our customer , we would make sure that it gives good value to our customers and has a controlled impact on our financials .
Speaker #2: And now on to the second part , which is on the penalty and the fine imposed by the government Currently , the investigation body is looking into it , as is the privacy related organization .
Speaker #2: And as you're well aware, the penalty and fine are calculated based on the revenue, the sales numbers of the company.
Speaker #2: So, it may differ by company. And now, to the second part of your second question, which is on our recent decrease in our MOU.
Speaker #2: Well , if you look at the MOU rankings or MOU numbers from January , to May , it actually was boosted by the KBO season , which started in April .
Speaker #2: And with the hits of our original content in May . So with that , we saw a really strong growth in MOU monthly average user numbers .
Speaker #2: But when the original contents came to a closure, we saw a very short-term, slight decrease in our MOU. But we cannot definitely say that it was due to the privacy leakage issue.
Speaker #3: Or Pollution In the A
Speaker #2: And to your last question, which was on our share valuation—well, as was mentioned during the presentation and in my previous remarks…
Speaker #2: Our previous answers , the advertisement market had rather been slow and we've been seeing some delays in our profitability improvement measures . And also there was a market situation which led to a slower than expected valuation recovery .
Speaker #2: But the company will work on improving our profitability, and we will be well in line with what the government has to offer as its policy.
Speaker #2: So, we may once again look into our dividend policies as well as shareholder return policies. The next question, please.
Speaker #4: Currently , there are no participants with questions . Please press asterisk , one asterisk and one . To give you a question
Speaker #5: If you
Speaker #4: Once again , if you have a question , please press asterisk one and asterisk and one . Please The following question is by Zhang Zhihe from DS investment Securities .
Speaker #4: Please go ahead
Speaker #1: TV
Speaker #2: Yes . I have two questions . First is on TV and you've seen a turnaround that's in very encouraging . Do you expect the trend to continue in And my second question is related to this season .
Speaker #2: So, how do you view the second half of the year for Fifth Season? Could you give us some color on that?
Speaker #1: On turnaround, in Q3 K season, is it three to two? Turnaround, so even six is, and to...
Speaker #2: Yes . This is TV . Answering your question . As was mentioned in my previous answer , our revenue stood at $140.7 billion with an operating profit of $6 billion .
Speaker #2: That was the number for this quarter, and this number was possible thanks to the good cable season and the hit of our original content.
Speaker #2: The the legend of the Kitchen Soldier and Yumi's cells . Three the original content hit saw led to a rise in the net subscription net subscriber numbers , and also a rise in their monthly average user basis .
Speaker #2: And this also had pushed and supported our subscriber sales . Plus assays as well And , , well , it's our branded zones .
Speaker #2: It also helped with our international sales, and now our outlook for the third quarter. Well, the third quarter is typically a low season for ads.
Speaker #2: And we will also be seeing higher costs when it comes to supply over content. And there will be slightly slower international sales in the third quarter.
Speaker #2: So overall , we may see rather a slower action compared to the second quarter . But if you look at it from a longer perspective , as was mentioned , our subscriber base is upper trending , as is our advertisement sales .
Speaker #2: So, in the medium to long run, our trend is upwards.
Speaker #3: This season
Speaker #2: And this is the answer from Fifth Season. As you've seen from the results, we've observed some delivery gaps this quarter, and we believe that will continue somewhat in the second half as well.
Speaker #2: Half as well. So, in the short term, to defend our numbers, we will focus on distribution and our films business.
Speaker #2: And for next year, we've secured two green lights. And with that, we will try our best to see no delivery gaps in the years to come. Next question, please.
Speaker #4: Currently , there are no participants with questions . Please press asterisk one asterisk , and one to give you a question
Speaker #3: Q&A session
Speaker #2: Since there are no further questions, we will end our Q&A session here.
Speaker #3: CJ ENM
Speaker #2: I thank everybody for
Speaker #5: CJ ENM The .
