CJ HelloVision Q2 profit down 12.5% after failed merger

[THE INVESTOR] CJ HelloVision, the nation’s largest cable TV operator whose recent attempt to be merged with SK Telecom ended in failure, saw a plunge in its second-quarter earnings.

The company posted 24.1 billion won (US$22 million) in operating profit in the April-June period, down 12.5 percent from a year ago. Revenue was also down 7.9 percent to 280.3 billion won.

The company said it has reduced marketing and investment activities after the merger plan was announced in November last year, leading to declines both in subscribers and profits.

“Thanks to continuing efforts, our debt-to-equity ratio has improved to 92.1 percent,” the company said. “We will start stalled investment and research activities in the latter half of the year.”

By Lee Ji-yoon (jylee@heraldcorp.com)