“How long will we be in deficit?”
“It can’t get any worse?” CJ ENM
, a renowned entertainment company , is expected to have a deficit exceeding 20 billion won in the third quarter of this year. CJ ENM recorded a deficit of 30.4 billion won in the second quarter and 50.3 billion won in the first quarter of this year. Due to the continued deficit, the stock price seems to have broken through the bottom and is crawling underground. The decline in content competitiveness is painful, with many highly anticipated movie and entertainment contents failing at the box office. Although it has been on a roll by releasing numerous hit contents, some people say that it is now “out of fashion.” Movies are losing out to Netflix, and even entertainment shows are not receiving much attention.
Samsung Securities predicted that CJ ENM’s operating loss in the third quarter would be 26.7 billion won, again below market expectations. Sales are also expected to decline. If this continues, the annual deficit is expected to reach 100 billion won. This is the worst performance since CJ ENM was founded. The consolation is that the deficit is expected to decrease in the second half of the year due to cost reductions.
Every piece of content released has failed at the box office, resulting in a shocking loss, and the stock price has also plummeted, making shareholders cry out.
On the 5th, CJ ENM fell more than 4% compared to the previous trading day, breaking a new low again. The stock price, which was토토사이트 120,000 won, plummeted to 53,100 won. The unbelievable plunge continues.
CJ ENM contents are going downhill in both artistic and commercial value. The viewership rating of ‘Dance Singer Wandering Troupe’, which featured famous dance singers and produced a huge amount of sales, was only around 2-3%, and in particular, the loss in the third quarter increased as the movie ‘The Moon’, in which 28 billion won was invested, failed at the box office. .
The break-even point for ‘The Moon’ is approximately 6 million viewers. However, it is understood that the number of viewers was only around 500,000. Not only ‘The Moon’, but also other highly anticipated films released by CJ ENM this year, such as ‘Ghost’ and ‘Count’, failed to do well at the box office. The outlook for
CJ ENM is also mixed. There are expectations that performance will improve after hitting bottom, saying, “It is difficult for it to get worse,” but considering the continued sluggish performance in the content sector, voices that recovery in performance will not be easy are gaining more weight.
In fact, the deficit each quarter was much larger than expected. Securities companies previously predicted CJ ENM’s second quarter deficit to be around 10 billion won, but the actual deficit was much larger, exceeding 30 billion won.
Above all, it is pointed out that there is an urgent need to change the nature of content. In a situation where demand for short-form content such as OTT , YouTube, and TikTok is increasing significantly, CJ ENMIt is pointed out that the content of is a lot of boring content that is just a rehash of celebrity names. There is an urgent need to restore fundamental content competitiveness.