CJ HelloVision of CJ Group is expected to achieve 1 trillion won in sales this year to become the first cable TV operator to reach the figure, industry sources said on Sunday.
During the first three quarters of this year, CJ HelloVision recorded sales of 857.6 billion won to achieve a quarterly average of 285.8 billion won. With a similar figure expected for the fourth quarter, annual sales are set to exceed 1 trillion won.
Local brokerages believe the company is capable of recording up to 1.2 trillion won in sales.
Next year, CJ HelloVision will likely focus on improving profit margins based on this year’s expansion, those close to the company said.
CJ HelloVision is among the few in the cable TV industry to see such a stellar performance. Within the embattled CJ Group, CJ HelloVision is one of only several money-making businesses. Most, including the food and entertainment branches, have shown lackluster figures.
Last year, CJ HelloVision’s sales rose 47 percent on-year to reach 891 billion won, while in 2011 it grew by 15.4 percent. The company has further expanded its base this year by acquiring four cable TV operators, which has led to a broader viewership.
Cable TV businesses accounted for about half of CJ HelloVision’s sales, while Internet and Internet phone services accounted for about 17 percent. New businesses such as the low-end phones being provided via the company’s Hello Mobile network services also contributed about 20 percent.
Improving profitability will be a challenge considering that third quarter operating profit declined by more than 20 percent, industry watchers said.
By Kim Ji-hyun and news reports