SM Entertainment Reports Q3 Operating Profit of 13.3 Billion KRW, Down 73.6% YoY

Sales Decrease by 9% Year-on-Year to 242.2 Billion KRW

SM Entertainment announced on the 5th that it recorded consolidated sales of 242.2 billion KRW and an operating profit of 13.3 billion KRW for the third quarter of this year. Compared to the same period last year, sales decreased by 9.0% and operating profit dropped by 73.6%.

The decline in performance was largely due to a decrease in album sales, reduced sales from major affiliates, and the production costs of the broadcast program for SM’s first UK boy group, DEAR ALICE.

The company explained, "Album and music sales decreased compared to the same period last year due to the high base effect of new album releases last year. However, concert sales increased through expanded performances and internalization of the concert business, which also led to increased MD (merchandise) sales through the expansion of concert-linked MD products."

On a separate basis, sales amounted to 172.1 billion KRW and operating profit to 27.1 billion KRW, representing decreases of 8.8% and 43.6%, respectively, compared to the same period last year.

SM has scheduled active activities for its artist lineup in the fourth quarter of this year and the first quarter of next year. In particular, a new female rookie group, the first in five years since aespa, is set to debut in the first quarter of next year, generating high expectations.

Additionally, following TVXQ’s Japanese full-length album release and their 20th anniversary concert tour in Japan, NCT Wish’s Japanese full-length album and NCT Yuta’s Japanese mini album will also be released. Red Velvet’s Irene will debut with her first solo album, and mini albums from Taeyeon and WayV, as well as a single from Natives, are also scheduled to be unveiled.

SM is planning the SMTOWN LIVE concert featuring SM artists in the first quarter of next year to celebrate its 30th anniversary. Various 30th anniversary projects, including an SMTOWN album, are also being prepared. The first full-length album of NCT’s Mark, EXO Kai’s mini album comeback after a long time, and mini albums from Red Velvet’s Seulgi, NCT Wish, and NCT Ten have also been announced.

Jang Cheol-hyuk, co-CEO of SM, said, "We are building artist IPs across all generations of K-pop not only through long-loved existing artist teams but also through rookie artist debuts that have continued since last year. We will further strengthen our artist lineup through the debut of a new girl group next year."

This content was produced with the assistance of AI translation services.