SM Entertainment (SM; Co-CEOs: Jang Cheol-hyuk, Tak Young-jun) announced on the 5th that it recorded consolidated third-quarter revenue of 242.2 billion KRW and an operating profit of 13.3 billion KRW. Compared to the same period last year, revenue decreased by 9.0% and operating profit by 73.6%, primarily due to a decline in album sales, reduced revenue from major affiliates, and production costs associated with SM’s first British boy group, Dear Alice.
On a standalone basis, SM reported third-quarter revenue of 172.1 billion KRW and operating profit of 27.1 billion KRW, reflecting decreases of 8.8% and 43.6%, respectively, from the same period last year. Although album and music sales declined year-over-year due to a high sales base from the previous year, concert revenues grew through increased performances and internalized concert operations, along with expanded concert-related merchandise sales. Net income for the period was 16 billion KRW, down 56.8% from the previous year.
Looking ahead to the fourth quarter and early next year, SM has planned extensive activities for its artist lineup. Notably, in the first quarter of next year, SM will debut its first new girl group in five years since aespa, generating considerable anticipation. This is part of SM 3.0’s roadmap to expand intellectual property (IP), which has introduced new global IP projects such as RIIZE, NCT WISH, the British boy group Dear Alice, and its first virtual artist, nævis. SM plans to release a single from the new girl group in Q1 of next year, alongside a full-scale promotional campaign.
Additionally, aespa’s latest mini album Whiplash, released on October 21, has received widespread acclaim, following their relay of hits this year, starting with Supernova. In November, fans will also enjoy the debut solo album of SHINee’s Minho, released on November 4, and the fourth full album from NCT DREAM.
Further releases include TVXQ’s Japanese album and 20th-anniversary tour, along with NCT WISH’s Japanese album, NCT Yuta’s Japanese mini album, Red Velvet’s Irene’s debut solo album, and mini albums from Taeyeon, WayV, and nævis.
Celebrating SM’s 30th anniversary in Q1 next year, fans can look forward to the SMTOWN LIVE concert, the SMTOWN album, and various anniversary projects. Other exciting releases include NCT Mark’s first full album, EXO Kai’s long-awaited mini album, Red Velvet Seulgi’s mini album, as well as new releases from NCT WISH and NCT Ten.
Co-CEO Jang Cheol-hyuk stated, “In addition to our long-beloved existing artist groups, SM is building a multi-generational artist IP lineup by continually debuting new artists since last year. With the new girl group debuting next year, our artist lineup will become even more robust. In celebration of our 30th anniversary, we are preparing various projects in concerts, albums, and merchandise, and we hope fans will look forward to what we have in store.”
