1. TJ Media H1 2025 Performance: What Happened?

TJ Media reported revenue of KRW 48.87 billion (4.88% YoY growth) in H1 2025, driven by continued growth in the e-catalog and karaoke system segments. However, operating profit decreased significantly to KRW 0.99 billion (65.37% YoY decline), and net income dropped to KRW 0.61 billion (70.94% YoY decline).

2. Reasons for Declining Profitability: Why These Results?

Despite revenue growth, the primary reason for declining profitability is the sharp increase in R&D expenses (62.24% increase) and SG&A expenses (5.44% increase). Impairment losses from investments in subsidiaries also contributed to the decline in net income. Cash outflow from dividend payments further strained the financial position.

3. Segment Analysis and Future Outlook: Which Businesses to Watch?

  • Karaoke Systems & Music Content: Continued growth in the domestic coin karaoke market and steady content sales are expected to generate stable revenue.
  • Online Platform: Platform expansion to YouTube, IPTV, and partnerships with in-vehicle karaoke services are expected to drive growth.
  • E-Catalog: Strong performance in the Japanese market and new product launches are contributing to revenue growth, with tablet-based new products expected to sustain growth.
  • Sound IC: Growth potential from K-POP and Chinese musical instrument markets.
  • Entertainment: Potential new growth opportunities from the activities of idol group ‘The Wind’.

4. Key Insights and Action Plan for Investors

TJ Media has a stable business foundation, but declining profitability poses a short-term investment risk. Future profitability improvement, new business growth, and response to changes in the macroeconomic environment will be key factors for investment decisions. Investors should carefully monitor these elements and make prudent investment choices.