'Concert Reopening Effect'... SM's Q3 Operating Profit Surges Over 3 Times
Q3 Consolidated Operating Profit 29.8 Billion KRW, Up 201.4%
Sales Increased 65% to 238.1 Billion KRW
Strong Performance Expected in Q4 as Well
[Asia Economy Reporter Ji Yeon-jin] SM's operating profit in the third quarter of this year increased more than threefold compared to the same period last year.
SM announced on the 14th through its earnings report that its consolidated operating profit for the third quarter of this year recorded 29.8 billion KRW, an increase of 201.4% compared to the previous year. During the same period, sales grew by 65.4% to 238.1 billion KRW, and net profit increased by 130% to 29.2 billion KRW.
The company analyzed that this was due to improvements in standalone performance as the COVID-19 endemic era began, along with a turnaround in the performance of major subsidiaries.
On a standalone basis, SM Entertainment's sales recorded 135.1 billion KRW, a 47% increase compared to the same period last year. Operating profit during the same period increased by 55% to 27.1 billion KRW, and net profit rose by 55% to 22.1 billion KRW. Album sales revenue in the third quarter increased by 15%, with idol groups NCT127 and aespa becoming million sellers. As offline events resumed domestically and internationally due to the COVID-19 endemic, event sales more than doubled, and concert sales increased more than 13 times. Sales also grew in the MD and licensing sectors through sales of light sticks related to concerts and operation of offline pop-up stores.
The performance of major subsidiaries improved significantly as offline concerts resumed, with SMC, Dream Maker, and Beyond Live turning profitable. SM C&C's performance greatly improved due to increased advertising promotion events and B2B travel demand.
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High performance is expected to continue into the fourth quarter as major artists have scheduled album releases and concerts. Mini-album releases by Red Velvet and Chen are planned for the fourth quarter, along with over 30 concerts scheduled domestically and internationally. NCT 127 has nine concerts planned in Korea, the United States, Japan, Thailand, and Indonesia, while Super Junior will hold six concerts in Hong Kong, Taiwan, and Indonesia. Additionally, Suho, Ryeowook, and KEY are also scheduled to hold concerts in Korea and Japan.
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