"Increase in MD, Licensing, and Concert Revenue"
SM Entertainment announced on the 10th that its consolidated operating profit for the fourth quarter of last year reached 33.9 billion KRW, marking a 275.6% increase compared to the same period the previous year. Sales were recorded at 273.8 billion KRW, up 9% from the previous year, while the net loss for the period decreased to 24.1 billion KRW, less than half of the loss from the same period last year.
During the same period, on a separate basis, sales and operating profit were 181.8 billion KRW and 35.8 billion KRW respectively, showing increases of 11% and 83.2% compared to the previous year. Net profit turned positive at 8.3 billion KRW.
The company explained that strong performance was driven by increased sales from MD (merchandising), licensing, and concerts. Growth in sales of key subsidiaries was also led by increased activities of affiliated artists in Japan and expanded drama production.
This year, active album activities are planned for the lineup of affiliated artists. In particular, on the 24th, the girl rookie group HATSU2HATS, debuting for the first time in five years since aespa, will debut with their first single "The Chase." Additionally, to celebrate the 30th anniversary, SMTR25, composed of 25 male trainees, was unveiled at the SMTOWN LIVE concert held last month featuring SM artists. With pre-debut promotions on social networking services (SNS) and participation in the SMTOWN LIVE global tour, preparations for debut are accelerating, raising expectations for new intellectual property (IP).
On the founding anniversary on the 14th, the SMTOWN album will be released. Next month, solo mini-albums by Red Velvet's Seulgi and NCT's Ten, as well as singles by NAIIVIS, will be unveiled. In the second quarter, aespa will release a new mini-album, R1SE will release a full-length album, and NCT members Doyoung and Mark will each release solo albums. EXO's Kai, Red Velvet's Irene & Seulgi, WayV, and NCT WISH will also release mini-albums.
Affiliated artists plan to continue performances both domestically and internationally. On the 14th and 15th, "SM Classics Live," the world's first concert combining popular music and classical music, will be held. The Seoul Philharmonic Orchestra will participate in this concert. The SMTOWN LIVE global tour will take place in the second quarter. Additionally, aespa is continuing their world tour in North and South America and Europe following the United States, and NCT 127 is currently on a world tour, having confirmed a performance at Tokyo Dome. Other tours include TVXQ's nationwide Japan tour concerts, Super Junior's Yesung and SHINee's Minho's Asia tours, as well as tours by Taeyeon and NCT WISH in Asia.
Co-CEO Jang Cheol-hyuk stated, "SM, celebrating its 30th anniversary, will continue to be a company that stays true to its fundamentals and works steadily based on the cultural heritage it has built so far." He added, "We will pursue not only a solid artist lineup and abundant content but also continuous innovation and expansion of artist IP."
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