Sales Reach 302.9 Billion KRW, Net Profit Hits 30.9 Billion KRW
Album Releases and World Tours to Continue in Second Half
"Expansion of Artist IP-Based Content Planned"
SM Entertainment announced on August 6 that, on a consolidated basis, its operating profit for the second quarter of this year was tentatively tallied at 47.6 billion KRW. This represents a 92.4% increase compared to the same period last year.
During the same period, sales reached 302.9 billion KRW, up 19.3%, and net profit rose by 267.2% to 30.9 billion KRW.
On a separate basis, second-quarter sales were 220.3 billion KRW and operating profit was 46.0 billion KRW, marking increases of 26.5% and 56.9%, respectively, compared to the same period last year.
SM explained, "The expansion of new album sales, increased music revenue, and strong performance in the planning and concert merchandise (MD) sectors were key contributors."
SM plans to continue its growth in the second half of this year by strengthening artist-centered intellectual property (IP) activities and expanding its presence on the global stage.
Super Junior, celebrating its 20th anniversary, is expanding its connection with fans through a variety of content and commemorative projects, while singer BoA also released a full-length album to mark her 25th debut anniversary.
In addition, the company released NCT Dream's full-length album, TVXQ's Japanese single, WayV's mini album, and the debut single of Seunghan&Seoul from RIIZE. SHINee's Key and Red Velvet's Joy will also release full-length and mini albums.
Furthermore, aespa and NCT WISH will release mini albums, while NCT Haechan's first solo full-length album and EXO's Suho and Chanyeol's mini albums are also scheduled for release. TVXQ's Yunho and Girls' Generation's Taeyeon will release full-length albums, and NCT Dream, WayV, and Hearts2Hearts will release mini albums. Singles from RIIZE, SHINee's Minho, and NCT's Jungwoo, as well as NCT Yuta's Japanese full-length album and TVXQ's Changmin's Japanese single, are also planned for release.
The concert segment is also active. RIIZE, currently on its first world tour, will showcase a variety of performances in 22 regions worldwide, while aespa's solo concert will begin in Seoul and expand into a world tour covering major cities around the globe. In addition, various artists such as Red Velvet-Irene&Seulgi, NCT Dream, EXO's Kai, NCT's Doyoung, and SHINee's Key will continue to perform both domestically and internationally.
Additionally, SM will expand its activities in China through a strategic partnership with Tencent Music Entertainment (TME), the largest music platform company with 550 million monthly users. The company plans to collaborate with TME in various areas such as content production, distribution, and fandom marketing, aiming to establish a comprehensive idol success model that connects production, distribution, performances, and data in the future.
Jang Cheolhyuk, SM's co-CEO, stated, "This quarter, we have visibly demonstrated that an all-encompassing content business centered on intellectual property (IP) can translate into tangible results," and added, "In the second half, we will pursue sustainable growth through the expansion of artist IP-based content and global activities."
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