SM Entertainment Reports 32.6 Billion KRW Operating Profit in Q1, Doubles Year-on-Year

Net Profit Surges 20-Fold with DearU Acquisition
Concert Revenue Jumps 58% Thanks to Continued Performances

On May 7, SM Entertainment announced that its consolidated operating profit for the first quarter of this year reached 32.6 billion KRW, more than doubling compared to the same period last year (15.5 billion KRW).

Revenue for the first quarter of this year was tallied at 231.4 billion KRW, representing a 5.2% increase from the same period last year. Net profit for the period surged nearly 20 times to 242.9 billion KRW, mainly due to the acquisition of shares in the fandom platform company DearU.

SM Entertainment's strong performance was driven by increased concert and music sales. Overseas concerts continued in the first quarter of this year, with concert revenue rising 58% year-on-year to 39.0 billion KRW. NCT 127 held 18 performances, followed by aespa with 16 and TVXQ with 10. Album and digital music sales grew from 55.1 billion KRW in the first quarter of last year to 67.8 billion KRW in the first quarter of this year, marking a 23.1% increase.

DearU, in which SM Entertainment acquired shares in March, is expected to be included as a consolidated subsidiary from the second quarter and reflected in consolidated results. Mid- to long-term synergy effects are anticipated, such as expanding into China through collaboration with Tencent Music and increasing the presence of SM Entertainment intellectual property (IP).