Record-Breaking Q3 Earnings Are Reported By SM Entertainment.

SM Entertainment posts record-breaking Q3 earnings

SM Entertainment, under the direction of CEO Jang Cheol Hyuk, has reported tremendous growth in the third quarter of this year, mostly due to increasing sales of albums and music from their excellent lineup of singers. The quarterly financial data suggests that SM made a significant surge in operation profit and sales—achieving the company’s highest quarterly performance to date.

According to the report provided by SM on November 8 KST, the company’s operational profit climbed to KRW 50.5 billion, with revenues piling to KRW 266.3 billion. Comparing these data to the same time in the previous year, revenues show an astounding increase of 70% in operating profit and a 12% increase in sales. It is also worth appropriately noting that the net profit reached KRW 84.2 billion, spiking 189%, compared to the same time the year before. The operational profit margin also grew by 6.5 percentage points year-on-year, coming up at 19%.

Looking into the various performance lines, the operating profit for the third quarter came in at KRW 48 billion and revenues at KRW 188.7 billion. This reflects an increase in earnings of 77% and 40% compared to the prior year. The net profit for the same period was KRW 37.1 billion, up 68% from the similar period the year before.

Boosted by the energetic activities of artists including NCT DREAM, aespa, and RIIZE, combined with the revival of offline concerts, there has been a large surge in album sales. The latest album releases during the quarter saw sales hitting 8.71 million units, eclipsing previous year’s same-period total of 4.15 million units. This surge of purchases drove the record sales to the highest ever in a quarter.

SM is poised to duplicate its excellent financial performance in the future quarters, backed by its line-up of significant album releases and music rollouts. A succession of releases are expected for November and December including Red Velvet’s 3rd full-length album, Taeyeon’s 5th mini album, NCT 127’s single, TVXQ’s 9th full-length album, and more.

Also, in the first quarter of next year, SM has ambitious plans for global expansion for aespa, including releasing a full-length English album. In tandem, SM is all prepared to release new albums by NCT DREAM and NCT NEW TEAM.

SM’s CEO Jang Cheol Hyuk is quite confident about the direction the company is moving toward. He forecasts a continuous development trajectory propelled by the upcoming albums and concerts from Aespa, Red Velvet, Taeyeon, and TVXQ, as they commemorate their 20th anniversary. He remarked, “We will actively promote the recruitment of global artists, ensure a stable supply of quality songs, and ensure that music sales to external labels and agencies will become a new revenue source for SM in the future.”