SM Reports Operating Profit of 18.3 Billion KRW in Q1, Down 5% YoY

Lower Than Market Forecast of 21.1 Billion KRW
Lowest Album Sales in the Last 8 Quarters
Q2 Performance Outlook Is Positive

SM Entertainment announced on the 11th that its consolidated first-quarter results showed sales of 203.9 billion KRW and operating profit of 18.3 billion KRW. Compared to the same period last year, sales (169.4 billion KRW) increased by 20%, while operating profit (19.2 billion KRW) decreased by 5%.

[Image source=Yonhap News]

Sales (200.6 billion KRW) exceeded the market forecast by financial information firm FnGuide. However, operating profit (21.1 billion KRW) fell short of expectations.

SM experienced the lowest album sales in the past eight quarters due to the absence of major idol comebacks, with 3.36 million albums sold. However, the removal of royalties from Like Planning partially offset the decline.

Meanwhile, the outlook for the second quarter is positive. With comebacks from aespa, EXO, and NCT Dream, the quarter is expected to record a historic high album sales volume of 7.5 million units. Additionally, with the resumption of performances by major artists, the combined audience for concerts and fan meetings is projected to reach 890,000. In particular, the performance of EXO, returning as a full group, is expected to have a significant impact on the results.