SM Reports Q2 Sales of 349.6 Billion Won, Up 15.4% on Concert and Merchandise Growth
Operating Profit Rises 11% to 52.9 Billion Won
Second Half Tours to Feature Aespa, NCT, and More
SM Entertainment experienced sales growth driven by overseas concerts, merchandise and licensing, and improved results from its subsidiaries.
On August 5, SM announced that its consolidated revenue for the second quarter of this year reached 349.6 billion won, up 15.4% from the same period last year. Operating profit increased by 11% to 52.9 billion won.
On a standalone basis, revenue was 240.6 billion won, marking a 9.2% increase from a year earlier. By segment, revenue from broadcasting and event appearances rose 27.9%, concert revenue grew 23.6%, and merchandise and licensing revenue increased by 22%.
Standalone operating profit was 43.8 billion won, a 4.6% decrease year-on-year. Net income also fell by 18.1% to 24.1 billion won.
Second quarter concert revenue reflected domestic and international tours by TVXQ, Super Junior, EXO, aespa, and NCT WISH. An increase in large-scale concerts by long-active artists, as well as more advertising and event appearances, also contributed to the sales growth.
Merchandise sold at concert venues and at pop-up events further supported revenue. SM hosted an NCT 10th anniversary pop-up, and held additional pop-up events to align with the new album releases from aespa, RIIZE, and NCT WISH.
Dream Maker, a concert production company, saw increased profit due to more domestic productions and greater collaboration with SM headquarters. DearU, which operates a fan communication platform, explained, "Profitability improved due to price increases in subscription fees and the expansion of external web-based payments for the application."
SM plans to continue releasing albums and conducting overseas tours in the second half of the year. In the third quarter, SM will release full-length albums from Red Velvet and NCT 127, mini-albums from Minho and WayV, and a single from Girls' Generation-Hyorisoo.
In the fourth quarter, full-length albums from Yesung, Taeyeon, Jaehyun, and NCT DREAM, as well as mini-albums from Max Changmin, Xiaojun, and NCT WISH, and a single from Hearts2Hearts, are scheduled for release.
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Aespa will begin its new world tour at the Gocheok Sky Dome in Seoul on August 7-8, then travel to North America, China, and Europe. U-Know Yunho, Super Junior-83z, Yesung, Ryeowook, NCT 127, and WayV will also hold domestic and international concert tours. NCT WISH is scheduled to continue its fan meeting tour.
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