For the IP business, Ki-Sung Hong, from Content Solutions, Sangah Lee. From Commerce Business Unit, we have Sungbae Park. From Pictures Business Unit, we have Eunje Shi. From Music, we have Hyun Soo Kim, and we have two CEOs from Studio Dragon, CEO Jaehyung Kim and Youngkyu Kim. From TVING, we have also two CEOs, Jiho Yang and Younghan Lee.
먼저 CEO 강호성 님의 주요 성과 및 전략 발표가 있겠습니다.
First, CEO Ho-Sung Kang will deliver our major results and strategy.
안녕하십니까? CJ ENM 대표 강호성입니다. 2022년 CJ ENM은 콘텐츠 제작을 강화하고 글로벌 시장에서 경쟁력을 높이기 위한 전략 실행을 지속해 오고 있습니다. 1분기에는 미국의 제작 스튜디오 Endeavor Content 인수를 마무리했으며, 한국의 신규 스튜디오 CJ ENM Studios 설립도 마무리하였습니다. 멀티 스튜디오 구축을 마무리한 만큼 향후 공동 기획과 공동 제작을 통해 World-class IP를 크게 확대할 예정입니다.
Good afternoon. This is Ho-Sung Kang, CEO of CJ ENM. CJ ENM continues to execute its strategy to enhance content production and global market competitiveness. In Q1, we have completed the acquisition of Endeavor Content, a production studio in the US, and the foundation of CJ ENM Studios, a new studio in Korea. With the establishment of a multi-studio system, we will strongly expand world-class IPs through co-planning and production.
또한 미국은 물론 라틴 아메리카와 유럽 등 세계 전역에서 우리의 콘텐츠를 공동 제작하고 유통할 수 있도록 글로벌 파트너사들과 협력을 강화하고 있습니다. Paramount+와 OTT를 통한 콘텐츠 유통 협력을 확대한 것을 비롯하여 HBO Max와 콘텐츠 공동 제작을 진행 중이며, 미국 시장에서도 유수의 글로벌 파트너사들과 제작 및 유통의 사업 협력을 강화하고 있습니다.
We are further strengthening cooperation with global partners in not only the US, but also across the globe, including Latin America and Europe, to co-produce and distribute our content. The company has increased content distribution cooperation with Paramount+ and OTTs. We are co-producing content with HBO Max. CJ ENM continues to strengthen production and distribution with renowned global partners in the US market as well.
특히 올해는 CJ ENM의 멀티 스튜디오를 강화하고 글로벌 사업을 확장하는 원년인 만큼 각 스튜디오들은 오리지널 콘텐츠의 기획 제작과 공동 제작 추진도 활발하게 진행하고 있습니다. Studio Dragon은 <방과 후 전쟁활동>, <아일랜드> 등 대표작을 준비 중에 있으며, Endeavor Content 역시 <Lost Flower>, <Surfside Girls> 등 주요 OTT향 작품 공개를 확대해 나가고 있습니다.
This is the start year of the company's earnest effort to enhance multi-studio strategy and global business. In this light, all studios are actively engaging in original content development and co-production. Studio Dragon is readying big titles including Duty After School and Island. Endeavor Content is also expanding OTT-bound titles such as Lost Flower and Surfside Girls.
앞으로 저희 CJ ENM은 국내를 대표하고 글로벌 시장에서 성장을 확고히 하겠습니다. 그동안 높여온 사업 경쟁력을 바탕으로 K-콘텐츠 시장을 국내뿐만 아니라 해외로 확장해 나가겠습니다. CJ ENM의 성장에 항상 함께 해주고 계신 주주 여러분께 깊은 감사 말씀드리며 이상 마치겠습니다. 감사합니다.
Going forward, CJ ENM will represent Korea and cement our global growth. Based on our established business competitiveness, we will deliver K-content to the domestic and also the global market. I thank the shareholders for always being with us in our growth journey. This concludes my presentation. Thank you.
다음은 실적 발표입니다. CJ ENM 분기 및 연간 실적 발표의 주 재무제표는 K-IFRS 기준 연결 실적임을 참고해 주시기 바랍니다. 그럼 2022년 1분기 전사 경영 성과 발표가 있겠습니다.
Now, the results presentation. CJ ENM's quarterly and yearly results numbers are K-IFRS consolidated numbers. Now, 2022 Q1 results.
안녕하십니까? CJ ENM 재무 담당 상목 황입니다. 1분기에 CJ ENM 연결 매출액은 9,573억 원으로 전년 대비 20.9% 성장했으나, 영업이익은 496억 원으로 47% 감소했습니다. 영업이익의 감소는 Entertainment 부문의 미디어 수익성 하락과 라이브 매출 부재 영향, 그리고 Commerce 부문의 취급고 감소 및 비용 증가 영향이 컸습니다. Entertainment 부문은 매출액 6,400억 원, 영업이익 367억 원을 기록했으며, Commerce 부문은 매출액 3,173억 원, 영업이익 129억 원을 기록했습니다.
Good afternoon. This is Sangmok Hwang, Head of Finance at CJ ENM. Consolidated revenue grew 20.9% YOY at KRW 957.3 billion, but OP decreased 47% at KRW 49.6 billion. The decrease was due to profitability decrease of media, the lack of live GMV decrease and expense increase of commerce. Entertainment recorded revenue of KRW 640.0 billion, with OP of KRW 36.7 billion. Commerce saw revenue of KRW 317.3 billion, with OP of KRW 12.9 billion. The company will fortify content and brand competitiveness in Q2. With restart of pictures and music live business, we aim to restore profitability. The media business continues to strengthen channel and digital competitiveness. Commerce is focusing on recovering GMV based on product portfolio.
In line with market reopening, Pictures Business Unit is enhancing pictures release strategy. As for music business, we have expectations for our in-house artists' global activities. Page five, media. Media business revenue in Q1 stood at KRW 546.4 billion, which is a 41.5% increase YOY, continuing its top line growth. Despite the high base effects from last year, TV ads continued its steady growth of 8.1%. Digital revenue also continued its rapid trajectory with 55.8% growth. However, we saw a temporary profitability decrease, with OP dropping 38.2% YOY at KRW 33.3 billion. The main cause of this was one-off expense due to Endeavor Content consolidation and production cost expansion with more original content.
We will also be enhancing our portfolio and content with Backpackers new shows, and we would also be enhancing our activities with tvN STORY and tvN SPORTS. TVING will also be working hard to increase its paying customers and work on its content competitiveness. Page six, commerce. Commerce Business Unit revenue decreased 4.1% YOY at KRW 317.3 billion. OP decreased 61.6% YOY at KRW 12.9 billion. With more outdoor activities, high-margin category GMV decreased. The profitability showed lackluster performance with CJ inventory valuation loss and platform commission increase. Product portfolio, including beauty and fashion, will be enhanced in the second quarter. The business will increase PB GMV to position as a brand company.
Through new launch of vertical platform and strengthen digital business, the business unit aims to recover GMV with enlarged customer pool. Page seven, Pictures. Thanks to the strong performance in Turkey and Vietnam, Q1 Pictures revenue grew 18.6% YOY at KRW 27.0 billion. Revenue was weak in the domestic market and with production loss of Hide and Seek and cost recognition of Endeavor Content consolidation, the business recorded a loss of KRW 9.4 billion. With cinemas reopening in Q2 and 3, the business is strengthening its release strategy, focusing on major titles. Broker is to be released on June eighth, and on June twenty-ninth, Decision to Leave is scheduled to be shown. With Alienoid in the summer's peak season, the business will enhance box office revenues and profitability. Page eight, Music.
Music revenue at KRW 66.6 billion, increased 27.7% over the previous year. OP at KRW 12.9 billion, increased 107%. With album sales of Kep1er and ENHYPEN, album revenue showed good performance. Overseas revenue, centering on the Japanese market, also continued its rapid growth. In the second quarter, the music business will also benefit from reopening. We will be seeing more concerts and conventions. We will see KCON once again being held, and we also are expecting activities from IOI, JO1, and INI. We do expect to see much more active activities for new albums, both home and abroad. Now, we will continue to hear from Studio Dragon. Good afternoon. This is Jaeyoung Kim, CEO of Studio Dragon. I will brief you on 2022 Q1 management results.
Revenue in Q1, 2022 recorded KRW 121.1 billion. Our aired titles, such as Twenty-Five Twenty-One and Military Prosecutor Doberman brought positive results. With expanded originals, including Juvenile Justice and King of Tears and Bad and Crazy, which were all bound for OTTs, we witnessed a 3.4% year-on-year growth, even with fewer titles aired. Our OP recorded KRW 18.1 billion. Our content's tradition in the global market and continued demand for them led to increase in price and volume for our newer titles and also older library titles. With that, we saw a growth of 1.4% over the previous year. TV and OTT or digital bound lineup will both see an increase in Q2 2022.
Tentpole titles, such as Our Blues, Monsters, and Alchemy of Souls will lead revenue growth, as well as the Yumi's Cells Season two. With expanded business with new global OTT platforms and sales of our new and library titles, we aim to record a strong profit. We're starting from the second quarter, we will earnestly engage in ESG management strategies and premium storytelling. We will strive to create sustainable social value. Now, we will continue to entertain your questions. Due to time constraints, please limit your questions to three per person and center it around our core issues.
Now Q&A session will begin. Please press star one, star and one, if you have any question. For translation, please press star two. That is star and two on your phone.
The first question will be given by Kim Hoe-jae from Daishin Securities. Please go ahead.
Ne. Annyeonghasimnikka. Daishin Securities Kim Heije imnida. Du gajui jeolmundeul itta. Hosi Endeavor Content siljeog-eul ddaro gunlihaeseo gonggye ganganhasimni gunggeumhandeyo. Jejak jijeonhago ilhaeseong biyong yongyeong-eulo bangsong siljeog-i bujinittda goi malseumjuseonneunde, geureotheom i bun higueneun jeongsanghwa gangan han geonji, hosi ganganhasimyeon olhae siljeog guidance jegong ganganhasimyeon deo gamsahamnida. Du beonjjaeneun jeohui inaudible champeonjiui geobiin E&M Studio lago haeseo yeoragaji project-eul chujejannda lago seolmyeong doeeo issneunde, ige ge yeope issneun Dragon Endeavor ga chujejan geon eotteoke daleun geonji, tto jeon ape nawa issneun gongdong gihwe gaejak chujejan geo eotteoke daleun geonji johom ssaekkkeolhyeoseo geureondeyo. Ige gak studio-ga seoro dareun platform-eul gongnyak haneun ge anira gakja dareun format-ui jejaeg-eul chujeunaneun geot-eul ihamyeon joilge buyon seolmyeong butakdrigetsemtda. Gamsahamnida.
Yes. I have two questions actually. First, could you carve out the results of Endeavor Content? Is it possible that you carve out Endeavor Content results? You talked about one-off effect related to the acquisition and merger of Endeavor Content. Could you please elaborate further on the one-off cost? Is it possible to see our normalized level of earnings in Q2? And i f possible, could you provide us with a guidance? This is my second question. It's related to your presentation, page three. You've mentioned the establishment of a new studio and how is the new studio different from your Studio Dragon and Endeavor Content? Well, is it bound for different platforms or will they be handling different formats? How is it different from the co-production that you mentioned?
I would like to know these points.
Yes. I would like to address the first question related to Endeavor Content. The carve-out number for Q1, revenue-wise, it was KRW 117.1 billion and OP, it's -KRW 70.8 billion, and the loss was due to delay in production due to COVID-19, not a cancellation, but a delay. The titles will be coming on board soon. This is a temporary loss nonetheless. This is some more good news. In Q1, we have really four titles and, of the four, three are already in place, already ready for season two. The seventh, it will be aired on Apple TV+. Streaming, ranking-wise, it's ranked number two. Once again, it's a delay due to COVID and the projects will be coming on board.
If I may address the second part of your question, which was on our multi-studio strategy. We have been relating this message to the market over several occasions. Each individual or different studios, they will have their forte in different areas when it comes to development and also production. There won't be.
A segregation of channels and platforms dedicated to different studios, as there have been some concerns of this issue in the market. So, for example, if Studio Dragon is to work with platform or channel A, it does not mean CJ ENM studio or any other platform would be excluded from using this platform A. This multi-strategy or multi-studio strategy enhances our capability or capacity, and will also be adding to the volume of production. Different studios, they will be working with different writers and different producers, so it would also be adding to the diversity of the programs that we offer. As for co-production, more detailed explanation will be given by Studio Dragon. This is the answer offered by Studio Dragon on your question related to co-production.
Well, we hope to improve the probability of having a hit title bound for the US market. Studio Dragon has its own creative pool and, well, other studios also they have their own creative pools. We hope to bring together the forte or the strength of the different talent pool. That would allow us to enjoy more synergy. With that, we would have higher probability of offering the US market or the bigger markets with a hit title. Well, these different studios they have their strength in different areas. For example, Studio Dragon, its strength lies with storytelling, and other studios they may excel at creating impactful scenes. If we bring these strengths together and engage in co-production activities, once again it could enhance the probability of offering a higher hit ratio title to bigger markets.
We hope to work the strengths of different studios together, and by having this combination, once again, we hope to see a higher hit ratio when it comes to our tentpole titles. As for studio-related question, it's at this given point in time difficult to disclose any titles, but we do have CEO Ha Yong-soo who will be heading the studio with us, so he could provide you with more details. Yes, this is CEO Ha Yong-soo, heading CJ ENM Studios, addressing your question. Studios, we will be mostly working for OTT-bound originals. Studio Dragon has been doing an excellent job in their own area, but we are a bit different from them. We are going to work with movie directors.
Recently, many movie directors are trying or attempting to tackle the OTT market with the original titles. We will be making focused investments in this area. We won't be doing it alone, we need good original IPs, and we also need the planning and development capabilities as well as the help of outstanding creatives. We will work together with Endeavor Content and also Studio Dragon and get their help in the original IPs and also the talent of their creatives. As was mentioned by CEO Kim, Studio Dragon has excellent storytellers who have been scripting drama scripts for many years. As for us, we have movie directors who can create magnificent scenes. If we bring these strengths together, we could work together on globally-bound big tentpole titles.
As was mentioned during the previous answer, it won't be cannibalization, it would be an addition of capability capacity. I cannot give you any names today. We are currently negotiating terms within the multiple global entities. As was mentioned, we do get inbound inquiries from top level, top tier movie producing companies and also directors. Once again, we will be working together with our sister studios.
The following question is by Kim Sung-han from Credit Suisse Securities. Please go ahead.
Yes, my question is addressed to Studio Dragon. You talked about your content sales in the previous quarter. My question is specifically related to your library sales. Of your sales, how much of a percentage is related to your library sales? My follow-up question, well my second question is also related to the first one. Well, you talked about an increase in content sales. You talked about the number 60, and then, in the next quarter, it was down to 20. So, on a yearly basis, I think this was less than expected. On a quarterly basis, what is your expected number for your content sales? If you carve out the sales of library titles, what will your content sales number be on a YOY basis? How has it changed?
If I may address your three questions, the library percentage on a yearly basis is about 30%. Our yearly outlook for content sales was at 60% increase, and you said that our Q1 numbers may seem quite low.
It's because the original content sales has a big influence on our overall revenue number or content sales number. Our originals, they are mostly to be aired in the second half. If you include the second half numbers, I think we would be well meeting our target number of 60%. As for carving out the library sales from our overall content sales numbers, well, we sell the older titles and new titles together. They create a synergy effect. So, i t's really difficult to carve out the library sales number from our overall sales numbers.
The following question is Jeon In-ae from Samsung Securities. Please go ahead.
Yes. I have three questions for CJ ENM. First is content. While you talk about consolidating their numbers into your numbers, and I believe the numbers were split into your media business unit and also your pictures business unit. So in terms of number of titles lined up, could you please talk about how many titles are bound for the media business unit and how many titles belong to the pictures business unit? My second question is related to your TVING business. How is your paying subscriber bases growing? How has it grown in the first quarter? My related question, I also see that you have plans for the overseas market, including Japan and Southeast Asia. When would you expect timing to be for you to go overseas with this business? One more about TVING.
Well, how will you be working together with Paramount+? This was my TVING related question. My other question is related to your financials. I see other losses numbering KRW 40.6 billion. Is it because of the consolidation with Endeavor Content? Is it a one-off thing, or is it related to other impairment issues? The first question will be addressed by our CFO, the following question by CEO Yang, and the other question will be addressed by our Head of Finance. Yes. You asked on the number of titles that will be created by Endeavor Content. Well, I did talk about the delay in our production schedule, and there still continues to be some uncertainty when it comes to production schedule.
with that being said, we do expect to see the introduction of about 13-15 titles by Endeavor Content. There is slightly more delay on the drama side, and the split of titles between drama and pictures. It's currently somewhere around four-six split, but we hope in the long run and that the drama portion accounts for 70% and pictures account for about 30%.
2분기와 하반기 가면서 딜리버 작품의 확대와 그다음 손익 기여들이 긍정적으로 예상을 하고 있는 상태입니다.
If I may give you more information on how Endeavor Content recognizes its revenue. It recognizes upon delivery, not upon release. As I just mentioned, there was some delay in Q1, and only one title was delivered, and that led to an OP loss of KRW 72.8 billion. But, there will be more delivery in the second quarter and the second half.
네, 티빙 답변 부탁드리겠습니다.
Yes.
네, 안녕하세요. 티빙의 양진희입니다. 질문 주셨던 것에 대해서 하나씩 설명드리겠습니다. 1분기 티빙 가입자는 전년 동분기, year over year로는 30% 이상 성장을 했습니다. 반면에 전 분기, quarter to quarter로는 성장 정체를 경험을 하고 있는, 일시적으로 지나는 상황이고요. 티빙은 큰 틀에서 linear 채널 중심이었던 시청 패턴이 OTT로 이동 중이라는 시각을 지금 유지하고 있고, 또 IPTV나 Cable TV 시장 규모를 넘어서는 등 시장 성숙 상황인 일부 글로벌 시장과는 달리 우리나라 OTT 시장은 아직 성장력이 크다고 판단하고 있습니다. 다만 코로나가 엔데믹으로 전환되는 과정에서 단기간에 급격한 규제 완화로 고객의 외부 활동이 좀 폭발하는 측면이 1분기 그리고 2분기에 좀 발생했다라고 볼 수 있고요. 동시에 시장 내 경쟁 심화 등 그리고 콘텐츠 증가 등으로 고객 피로 현상이 겹치면서 1분기에 일시 정체를 경험을 하고 있다고 생각합니다. 2분기 하반기부터 시장 정상화 시대로 지금 판단하고 있습니다.
시장 상황 정상화에 따라서 티빙은 기존 것뿐 아니라 가입자 차별 확산을 위해서 더 다채로운 오리지널 콘텐츠를 계속해서 공급할 계획을 가지고 있고요. Paramount+하고도 방금 질문 주셨던 대로 제휴를 통해서 고객 선택의 폭을 더욱 다양하게 하도록 노력을 할 예정입니다. Paramount+와 파트너로서 여러 가지 전략적인 제휴, 구체적인 마케팅 방안, 콘텐츠 공급 계획 논의해서 곧 모시고 이제 공개하는 자리를 가질 예정입니다. 그때까지 좀 기다려 주셨으면 하고요. 또 동시에 NAVER 를 포함해서 유통 채널도 지속적으로 강화하고 확장해서 성장동력을 유지하도록 노력하겠습니다. 마지막으로 해외 진출 시점이나 상황에 대해서 질문 주셨고요. 티빙이 일본, 대만 등으로 진출하기 위해서 우선순위 파트너로 얘기되고 있는 업체들과는 지속적으로 협력 관계를 논의 중입니다. 티빙의 국내 시장 성장 그리고 수익성 그리고 진출하려는 해외 시장에 있어서 어떻게 하면 조금 더 성공 확률을 더 높일 수 있는지 구체적으로 simulation하고 전략을 세워서 실행하기 위해서 노력하고 있습니다.
역시 올 하반기에 조금 더 구체적인 실행 결과에 대해서 말씀을 드릴 수 있도록 하겠습니다. 이상입니다.
Yes, this is Jiho Yang from TVing addressing your TV related question. On your subscriber question, well, on a YOY basis, we saw the number of subscribers increased by 30%. on a QOQ basis, we're seeing temporary stagnation. well, the viewer pattern in other global markets, it has, the viewers on OTT, the number of viewers on OTT has transcended or has increased beyond the number that we see for IPTV and cable TV watchers. that is not yet the case in the Korean market. with that, we believe that the Korean OTT market has potential to grow even further. However, COVID, it was reclassified. It's currently being reclassified as an endemic, not a pandemic. there has been a rapid easing of regulations in Korea.
With that, more and more people are going outdoors to enjoy outdoor life. With this, we are seeing a drop in viewership, and with overheated market competition and the overflow of content, there also is an issue of viewer fatigue. However, we do foresee a market normalization starting second quarter. With that, we will be seeing our subscriber growth rate to go back to what it was. We also will be working to provide more original content to our TV platform. As for your second question, which is related to our relationship or our work together with Paramount+, by working together with Paramount+ we hope to give more choice to our viewers or our customers.
We would also be discussing with Paramount on marketing activities and on how to supply quality content to the viewers. Should we get the details ready, we would also be delivering the related information to the market and to you. We've also been enhancing our activities together with NAVER on how to deliver our content and also on other ways and measures too. Now on to your third question related to our activities overseas or our planned activities overseas. Well, we hope to bring TVING to Japan and also Taiwan market. We are currently discussing with many potential partners on ways of future cooperation. Well, we hope to duplicate our domestic success in the overseas market as well. We hope to bring the profitability too.
And we are currently discussing with many potential partners so that we have a better chance of success in our potential global markets. And we will be running various detailed simulations to come up with a more concrete plan for a more concrete execution. Should things become more clearer, we would also be delivering the information to the market.네, 세 번째 영업에 답변드리겠습니다.
영업 손익 중에서 기타 부분에 대해서 질문을 주신 거고요. 그게 마이너스 한 400억 정도 되는데, 그중에서 가장 큰 것이 일회성 항목인데요. 가장 큰 것이 저희가 CJ라이브시티에서 발생을 한 것이고, CJ라이브시티가 기존 사업계획을 이행하기 위해서 설계비를 지출하는 부분이 있었는데, 그 설계비 중에서 사업계획의 변경으로 그 설계가 필요 없게 된 부분이 있었습니다. 그래서 자산으로 인식한 설계비를 손상차손으로 인식한 부분이 한 290억 정도 있었고요. 그 외에는 큰 특이사항은 없었습니다. M&A 비용으로 한 13억 정도 지출된 거, 그래서 400억 중에서 한 300억 가량이 일회성 항목이라고 보시면 되겠습니다.
Now on your other non-operating loss related question. Well, the number here is from around KRW 40 billion, and most of it has to do with the CJ Live City. Well, there has been a change in CJ Live City related plans and the design costs related to design, and well, the design cost of CJ Live City, well, it has become obsolete since we had a change in plan. With that, the asset-recognized design cost has become obsolete, and that's been a loss of KRW 29 billion. There was a small spending on M&A amounting to KRW 1.3 billion. Out of the KRW 40 billion loss, KRW 30 billion is a one-off thing. 예, 그 한 가지 추가 드리면은 영업에서 지금 지분법 손실도 좀 확대가 된 상황인데,
이 부분은 그 지분법 대상 법인을 붉다운 드리기는 좀 어렵고요, 공시 이슈 때문에. 참고해서 봐주시면 좋을 것 같습니다. 이상입니다. And if I may add, well, there has been some equity method losses too. I cannot give any names here because of regulatory issues. Please note there was an equity method loss as well. 다음 질문 부탁드리겠습니다.
Next question please. 다음으로 질문해 주실 분은 NH투자증권의 이화정 님입니다. 질문해 주십시오. The following question is by 이화정 from NH Investment & Securities. Please go ahead.
간단한 질문 두 가지만 드리겠습니다. 첫 번째로는 Endeavor Content 인수 관련해서 향후에 PPA 상각비 들 것 같은데 관련해서 디테일 좀 부탁드리겠고요. 두 번째로는 지금 TVING 관련 콘텐츠 스펜딩 계속 늘어나고 있는 것 같은데 이거 말씀주신 대로, 그러니까 저번 가이던스대로 변동 없이 진행 중인지, 이 부분 두 가지 말씀 부탁드립니다.
Yes, two questions. First is on purchase price allocation related to the acquisition of Endeavor Content. Could you please provide us with detail on your PPA plan? My second question is related to TVing. I believe that there will be more content related spending related to TVing. Would it influence the guidance number that you mentioned?
PPA 관련해서 질문 주셨는데요. 결론부터 말씀드리면 PPA 작업은 지금 진행 중입니다. 이 PPA를 하게 되면 무형자산이 상각이 돼서 그게 이제 영업이익으로 반영이 되게 돼 있는데, 아직은 PPA 작업이 이루어지지 않아서 그것이 감가비로 비용화된 부분은 아직 없습니다. 아직 장부상 자기자본 대비 초과 지급한 프리미엄 부분은 영업권으로 전부 들어가 있는 상태입니다.
Yes. On to your first question, which is related to purchase price allocation. We're still working on it. Should we start to earnestly work on it, the intangible asset will be amortized and the numbers would go to our operating profit numbers. As of today, we are still working on it, so it's not being expensed as G&A numbers. Currently the premium paid on the acquisition, it's currently being recognized as goodwill.
숫자 조금 더 설명을 드리면, 아시는 것처럼 지금 Endeavor Content 인수 가액은 약 9,360억원 정도이고요. Net Asset이 현재 기준으로 4,680억원 정도입니다. 말씀드린 대로 이제 PPA, PMI 계속 진행 중이라서 숫자가 약간 바뀔 수는 있지만, 그 레벨을 참고해 주시면 좋을 것 같고요. 현재 1분기 기준으로 영업권은 4,680억원으로 인식되고 있습니다. 이상입니다.
Yes. If I may give you some more number-wise answer to your previous question, well, we acquired Endeavor Content at KRW 936 billion, and the net asset of Endeavor was at KRW 468 billion. We're still working, as was mentioned, on the PPA and the PMI process, and the goodwill paid on this project or this case was KRW 458 billion.
두 번째 질문 답변드리겠습니다. 결론적으로는 가이던스에 대해서는 지금 아직은 변화에 대해서 말씀드릴 때는 아닌 것 같고요. 제작비 관련해서는 TVING 상각비는 1분기에 266억원이었습니다. 연간 계획에서 보면, run rate를 보면 지금 인라인하게 가고 있는 상황이라고 보시면 될 것 같고요. 물론 매출 부분은 아까 양지은 님 말씀 주셨지만, 콘텐츠 강화나 다양한 제휴를 통해서 좀 회복하도록 하겠습니다. 그리고 TVING 외에 저희 ENM 본체, tvN 등의 제작비도 전체 저희가 한 8,000억원 정도 토탈 TVING 포함해서 예상하고 있는데, 전사로 봤을 때도 지금 인라인하게
And now on to your second question related to probable changes to our guidance. As of today, I cannot talk about any probable potential changes. The production cost related to TV is at KRW 26.6 billion. It's in line, if you look at the run rate, it's in line with the guidance number that we provided. All in all, our production cost expected is at KRW 80 billion. If you look at the company as a whole, it's in line with our projected number, and it's under 20%. If you look at the run rate, it's under 20% of our expected production costs as of Q1. Yes, if I may give you more number-wise answer to your guidance related question, including TV and the other channels.
Well, the guidance number that we've issued at the earlier part of this year sits at KRW 860 billion. Of that, non-captive accounts for KRW 120 billion. The four non-captive is a cost plus basis, so it's no burden to the company. So, if you take out that 120, well, it leaves us with KRW 740 billion. And if you look at the run rate for TV and channels, in Q1, the run rate is under 20%. Once again, when it comes to production costs, it's in line with the guidance number that we've issued at the early part of this year. Should we complete the PMI process related to Endeavor Content, we will be disclosing the new findings to the market.