CJ CGV Posts Record Quarterly Operating Profit of 73.6 Billion Won; ‘The Odyssey’ and ‘Spider-Man 4’ Boost Premium Formats

South Korean operations return to profitability as premium-format synergy builds; global box-office momentum to accelerate in Q4

CJ CGV posted its highest quarterly earnings on record, driven by growing demand for premium-format theaters and a recovery in the profitability of its core business in South Korea. The results came as theatergoing trends worldwide shifted toward specialized screening formats.

CJ CGV said in a regulatory filing on the 6th that its consolidated operating profit for the third quarter this year was provisionally tallied at 73.6 billion won, up 215.2% (50.2 billion won) from a year earlier. That was the company’s highest operating profit ever for a quarter. Revenue rose 18.0% (105 billion won) to 688.1 billion won over the same period. Profit before tax also reached 38.4 billion won, marking a return to profitability and the highest third-quarter figure since 2016.

The South Korean business was the leading contributor to the strong results. The domestic theater business returned to profit after three quarters, posting operating profit of 28 billion won. Revenue in South Korea totaled 259 billion won, up 32.0% (62.8 billion won) from a year earlier.

As more moviegoers seek immersive experiences beyond conventional screenings, premium-format theaters drove results. Major tentpole releases, including The Odyssey and Spider-Man: Brand New Day (Spider-Man 4), drew audiences to specialized formats such as IMAX, ScreenX and 4DX. Premium-format screenings accounted for 18.1% of all CGV admissions in South Korea in the third quarter this year, up sharply from 6.7% in the third quarter of 2019.

Growth at CJ 4DPLEX, the company’s premium-format subsidiary, also stood out. In the third quarter, CJ 4DPLEX posted revenue of 42.5 billion won and operating profit of 9 billion won, increases of 25.0% (8.5 billion won) and 157.1% (5.5 billion won), respectively, from a year earlier. Results were supported by the worldwide response to Spider-Man 4, the first Hollywood film presented across four surfaces—front, side walls and ceiling—and by the expansion of ScreenX locations in South Korea and abroad.

CJ OliveNetworks, the group’s IT solutions affiliate, also helped underpin the group’s solid earnings improvement. Boosted by increased orders for artificial intelligence (AI)-related projects, it posted revenue of 224.2 billion won and operating profit of 16.5 billion won, up 9.7% and 9.3%, respectively, from a year earlier.

CJ CGV expects growth led by premium formats to continue in the fourth quarter, supported by the staggered release of highly anticipated global titles, including Avengers: Doomsday and Dune: Part Three.

Jung Jong-min, CEO of CGV, said, “We will continue to build a sustainable profit base by expanding our unrivaled premium technologies, including ScreenX and 4DX, worldwide and strengthening the competitiveness of our theater businesses at home and abroad.”