SM Entertainment Sets a New Record for Third Quarter Performance with Higher Album, Music, and Show Revenue

With strong record sales of albums and music predicted for the fourth and first quarters of 2023 and 2024, SM Entertainment is well-positioned for future success. It is set to enthrall audiences worldwide with its amazing music and entertainment offerings as it embarks on a future full of fantastic initiatives.

One of the major entertainment firms in South Korea, SM Entertainment, announced a consolidated operating profit of KRW 50.5 billion for the third quarter—a startling 70% YoY (year-over-year) rise. Accompanying this win is a 12% yearly growth in earnings, amounting to KRW 266.3 billion, indicating the best quarterly performance, with net profit rising to KRW 84.2 billion from KRW 29.2 billion in the same period the previous year, an increase of 189%. The third-quarter operating margin turned out to be 19%, a 6.5 percentage point YoY increase per the press release.

It states that Aespa, RIIZE, NCT DREAM, and other artists’ increased music and record sales, together with a rise in artist engagements, including concerts, all accounted for SM’s substantial profits. With 8.71 million new albums sold in the third quarter, the company broke the record for quarterly album sales in the core music market. In addition to EXO, NCT, and RIIZE becoming million-sellers, NCT DREAM evolved into a quadruple million-seller with 4.32 million copies purchased. Aespa made 18 world tours around Europe, Asia, and North America while it continued to grow its global fan base.

A 38.4% YoY increase in operating profit, revealed by DREAM MAKER, at KRW 3.9 billion, is one of the notable results of SM’s subsidiaries that feature in the report. Additionally, SMC reported an operational profit of KRW 1.2 billion, a 122% YoY increase. While SM C&C posted an operational profit of KRW 900 million, a 20% YoY decrease, KEYEAST’s significant reduction of its YoY deficit with an operating loss of KRW 400 million is as noteworthy.

With strong record sales of albums and music predicted for the fourth and first quarters of 2023 and 2024, SM is well-positioned for future success. With NCT 127’s sixth full-length album and rookie group RIIZE’s release of the single “Talk Saxy” last month, the period ahead will be bursting with releases. This features Taeyeon’s fifth mini album, To. X; Red Velvet’s third studio album, What a Chill Kill; Aespa’s fourth mini album, Drama; WayV’s second studio album; plus, a new song by Ryeowook of Super Junior. December will see the release of an all-new track by NCT 127, together with TVXQ’s ninth studio album.

SM Entertainment is set to enthrall audiences worldwide with its amazing music and entertainment offerings as it embarks on a future full of fantastic initiatives. 2024 will see the release of a new single by Aespa along with a full-length English album targeted at a worldwide audience. The highly anticipated albums of NCT DREAM and NCT NEW TEAM are poised to be released, giving fans a lot to look forward to. Enhancing its music publishing business is another of SM’s goals. Its affiliate, Kreation Music Rights (KMR), is apparently planning to build overseas subsidiaries so that it can hire songwriters who are passionate about the K-pop industry, besides building its in-house songwriting team.

“We have a packed line-up of activities through the end of the year, from Aespa, Red Velvet, and Taeyeon to TVXQ’s 20th-anniversary album and concerts,” CEO Cheol Hyuk JANG expressed excitement over SM’s possibilities. “We are also planning on showcasing a strong lineup of artists and content in the coming year as well. Through our music publishing subsidiary KMR, we’ll actively seek out global songwriters, focus on securing a stable supply of high-quality songs, and eventually secure a new stream of revenues for SM through royalties made from selling music to external labels and agencies,” he added.