SM Entertainment Q1 Operating Profit Rises 18.5% to 38.6 Billion Won

Concert Sales Surge by 56%

Hearts2Hearts Makes Significant Strides

SM logo image. Provided by SM Entertainment

On May 6, SM Entertainment announced that on a consolidated basis, it recorded sales of 279.1 billion won and operating profit of 38.6 billion won for the first quarter of this year. Compared to the same period last year, sales increased by 20.6% and operating profit rose by 18.5%, respectively.

The sales growth was driven by increased album sales of core intellectual property (IP) and the expansion of concert scale. Standalone sales for the first quarter were 189.3 billion won, up 14.4% from the previous year.

By segment, concert sales increased by 56.0%, while merchandise (MD) and licensing sales grew by 20.3%. SM explained, "Global tours by Super Junior, NCT Dream, aespa, RIIZE, and NCT WISH contributed to the improved performance." Net profit for the period was 38.9 billion won, up 20.9% year-on-year.

The performance of major subsidiaries also improved. SM stated, "SM C&C saw increases in advertising and management sales, while SM Japan experienced higher sales due to the expansion of artists' overseas activities."

Hearts2Hearts, a rookie girl group that debuted last year, achieved notable results in the global market. Their song "RUDE!", released in February, saw approximately 85% of its streaming from overseas. This track achieved the highest position among K-pop girl group releases of the year on Spotify's 'Global Top 200' chart. Both "The Chase" and "STYLE" also surpassed 100 million cumulative streams each.

In the second quarter, full-length albums from Taeyong, aespa, and NCT WISH, as well as mini-albums from SHINee, RIIZE, and Hearts2Hearts, will be released. In the third quarter, full-length albums from Taeyeon and NCT 127, and mini-albums from Red Velvet and WayV, among others, are planned. In the concert segment, aespa's new world tour will be held, along with tours by EXO and U-Know Yunho, and a concert by Irene.

SM stated, "Based on our 'SM NEXT 3.0' strategy, we will strengthen our IP competitiveness and continue global expansion to lay the foundation for mid- to long-term growth."

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