On November 8, 2023, SM Entertainment Co., Ltd. announced their highest-ever quarterly profit earnings in Q3, driven mainly by a significant increase in music and album sales.
Discover how SM Entertainment Co., Ltd. achieved a historic milestone in Q3 2023 with a remarkable 70% increase in profits, reaching KRW 50.5 billion. Let’s delve into their unprecedented financial success, driven by soaring music and album sales from top artists like NCT DREAM, aespa, and RIIZE. Get insights into their record-breaking album sales, upcoming projects, and strategic expansion plans in the music industry. Take an in-depth look at SM Entertainment’s impressive quarter and impact on the global entertainment landscape.
SM Entertainment Impressive Financial Success Highlights
SM Entertainment reported a remarkable 70% year-over-year (YoY) increase in their consolidated operating profit, reaching KRW 50.5 billion. Their revenue also saw a 12% YoY rise to KRW 266.3 billion. This period marked their best quarterly performance, with net profits soaring by 189% to KRW 84.2 billion.
On an individual basis, SM Entertainment saw a 77% YoY jump in operating profit to KRW 48 billion and a 40% increase in revenue to KRW 188.7 billion. Net profit grew by 68% to KRW 37.1 billion, attributed to solid music and recording sales by NCT DREAM, aespa, and RIIZE, and an uptick in artist activities like live concerts.
Milestones in Music Sales
The company experienced a breakthrough in album sales, selling 8.71 million new albums in Q3, more than doubling the previous year’s sales. Key contributions came from NCT DREAM, EXO, NCT, RIIZE, and aespa, with extensive global tours adding to their success.
SM’s subsidiaries, including DREAM MAKER and SMC, also reported notable profits. However, SM C&C faced a 20% YoY decrease, and KEYEAST reduced its yearly deficit significantly.
Upcoming Releases and Projects
SM Entertainment is gearing up for a series of releases and projects. These include albums from NCT 127, WayV, aespa, Red Velvet, Taeyeon, Super Junior’s Ryeowook, and TVXQ. aespa also plans to release a full-length English album in 2024, and NCT DREAM and NCT NEW TEAM are preparing for their upcoming albums.
Moreover, SM is focused on expanding its music publishing arm, Kreation Music Rights (KMR), planning to hire 80 songwriters and establish overseas subsidiaries to tap into global talent.
CEO’s Vision for the Future
CEO Cheol Hyuk JANG expressed enthusiasm for the company’s upcoming projects, including aespa, Red Velvet, and TVXQ’s 20th anniversary album. He highlighted the strategy of securing high-quality songs and generating new revenue streams through KMR.
SM Entertainment’s remarkable Q3 performance underscores its dedication to innovation and global music and entertainment industry excellence. The company is poised for sustained growth with its diverse array of upcoming music and entertainment ventures.
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