SM Entertainment Reports 1Q Operating Profit of 15.5 Billion KRW, Down 14.9% YoY... "Impact of Establishing Multi-Production System"

SM Entertainment announced on the 8th that it recorded consolidated sales of 220.1 billion KRW and an operating profit of 15.5 billion KRW in the first quarter of this year. Sales increased by 7.9% compared to the same period last year, while operating profit decreased by 14.9%.

The increase in sales was driven by the expansion of concert scale and growth in advertising and drama production revenue. Operating profit slightly declined due to an increase in personnel following the establishment of a multi-production system introduced in the second quarter of last year and higher initial operating costs of new subsidiaries.

Looking at each business segment, the number of new album sales released in the first quarter was 2.76 million, surpassing the 2.15 million recorded in the same period last year. NCT DREAM (2.46 million copies) achieved double million-seller status, demonstrating its influence in domestic and international music markets. NCT WISH, which officially debuted last February, successfully topped major music charts in Korea and Japan. In particular, large-scale concerts by NCT 127, SHINee, and TVXQ led to a 21% increase in concert revenue compared to the previous year.

KeyEast, an affiliate, turned a profit with an operating profit of 700 million KRW due to increased drama production revenue. SM C&C reduced its deficit compared to the same period last year thanks to growth in advertising promotion and travel business revenue.

SM Entertainment is actively promoting overseas activities of its artists this year to expand its global fandom. NCT DREAM’s third world tour is scheduled, and aespa will embark on a world tour covering 14 regions starting at the end of June. RIIZE will also hold its first global fan concert, actively pursuing global fandom expansion.

At the end of May, aespa will release their first full-length album. In June, Suho’s third mini album and RIIZE’s first mini album are scheduled for release. Following that, Red Velvet and WayV will release mini albums in the second quarter, while Super Junior and Mark will release singles. NCT DREAM and NCT WISH are also scheduled to release singles in Japan during the second quarter.

Additionally, SM Entertainment plans to continue expanding collaboration with Kakao in secondary IP (intellectual property) businesses such as webtoons, web novels, and mobile games, strengthening mutual synergy.

Jang Cheol-hyuk, CEO of SM Entertainment, stated, "We will diversify our portfolio through virtual artists, new IP debuts, web novels, and games in the secondary IP business to enhance our global competitiveness."

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