CJ ENM reports 25 billion won net loss in the second quarter

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CJ ENM reports 25 billion won net loss in the second quarter

CJ ENM lost 25 billion won ($19 million) on a net basis in the second quarter.
The loss was mainly due to continued expenses related to the purchase of certain assets from Endeavor, a Beverly Hills, California production company, and losses incurred by CJ ENM investments.
The market consensus was for a 43.5-billion-won net profit, as compiled by FnGuide.
Revenue was a consensus-beating 1.2 trillion won, up 31.3 percent on year, helped by the success of “Yumi’s Cells.” Disappointing box office results of its much-anticipated films “Broker” and “Decision to Leave” contributed to the loss.
For “Broker,” 1.23 million tickets were sold, failing to reach the 1.5-million break-even-point. For “Decision to Leave,"1.71 million tickets were sold as of Wednesday.
Endeavor Content lost 9.2 billion won to during the second quarter, from 17.8 billion won in the first. This is because many of its distribution plans were postponed due to the pandemic, according to Chris Rice, co-CEO of Endeavor Content.
“Much of our revenue and profit relies on the delivery of our shows,” said Rice during the conference call. “Timing is crucial. The delays by Covid-19 impacted that, but we have a robust pipeline for now and certainly for the future. We have phenomenal projects going into next year and we’re feeling good about the pipeline."
The company expects sunnier spells in the latter half of the year, as its much-anticipated action flick "Confidential Assignment: International" is coming out in September.
Studio Dragon, CJ ENM's production subsidiary, and Endeavor Content have “10 more collaboration projects" this year, according to Studio Dragon CEO Kim Jey-hyun. The two companies will either adapt Endeavor’s English films into Korean or vice versa, or co-develop new content together. Details were not shared during Thursday’s event.

BY YOON SO-YEON [yoon.soyeon@joongang.co.kr]
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