12 May 2021 Genie Music Reaches Record Operating Profit on The Back of Strong Digital Sales

Genie Music’s CI.

Genie Music reported record operating profits last quarter on the back of strong digital music sales and its efforts to reduce marketing costs.

Genie Music announced on the 11th that its operating profit for the first quarter of 2021 reached 4.2 billion Won. This is the highest quarter profit that the company has ever reported. During the same period, the company’s revenue reached 6.1 billion won, showing a 0.78% increase compared to the same period last year.

In a phone call with our paper, a Genie Music staff member stated that “Our distribution revenue increased thanks to the digital sales from the Hip-hop survival program “Show Me the Money” and the strong album sales of the girl group Dreamcatcher.”

The member added that “Following our turn into profit-making territory in the 4th quarter of last year, aiming for qualitative growth, we reduced advertising and other marketing costs, which allowed us to improve our financial structure.”

Genie Music plans to continue its efforts to differentiate its core music service. The company is set to enhance its AI-based music service and develop a live fan-meeting platform, expanding its untact service portfolio.

It also plans to expand its partnership model by building off its synergy with its big 3 shareholders, KT, CJ ENM and LG U+, as well as to discover new audio-related enterprises to attract new paying users. Its global digital music distribution business is also set for aggressive expansion.

Park Hyo-je, the department head of Genie Music’s Management and Evaluation office, said “We will continue strengthening our fundamental-based trend towards profit by securing various growth motives for the untact environment.”

T/L Note: Untact is a Korean English word for ‘non-contact’

Source: Reporter Jung Gil-jun jeong.kiljhun@joongang.co.kr
Translation by 7-Dreamers HojuneTL
Please do not take translation without credit

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