SM Entertainment reported its Q3 earnings, marking a record-breaking quarter with consolidated operating profit of KRW 50.5 billion ($42 million), a 70% year-on-year increase, and revenue of KRW 266.3 billion ($223 million), a 12% YoY increase. The company's net profit also saw a significant jump, increasing by 189% to KRW 84.2 billion ($70 million).
This strong performance can be attributed to increased music sales from artists such as NCT DREAM, aespa, and RIIZE. The company sold a record-breaking 8.71 million new albums in Q3, with NCT DREAM alone selling 4.32 million copies. Other bands including EXO, NCT, and RIIZE also achieved the million-seller status, contributing to the company's robust earnings.
SM Entertainment's subsidiaries also showed impressive performance during the same period. DREAM MAKER posted a 38.4% YoY increase in operating profit to KRW 3.9 billion ($3.26 million), while SMC reported a whopping 122% YoY surge in operating profit to KRW 1.2 billion ($1 million). On the flip side, SM C&C announced a YoY decrease in operating profit by 20% to KRW 900 million ($753,000), and KEYEAST reported an operating loss of KRW 400 million ($335,000).
Looking ahead, the company anticipates strong album and music revenues for Q4 of 2023 and Q1 of 2024 due to upcoming releases from several of its acts including NCT 127, WayV, aespa, Red Velvet, Taeyeon, Super Junior's Ryeowook, and TVXQ. Notably, NCT 127 is set to release their fifth full-length album and RIIZE released the single “Talk Saxy” last month.
In 2024, SM Entertainment has plans for global expansion with aespa releasing a full-length English album for a global audience and a new single. NCT DREAM and NCT NEW TEAM are also preparing for their highly anticipated albums.
The company also plans to expand its music publishing business through Kreation Music Rights (KMR), aiming to secure 80 talented songwriters and establish overseas subsidiaries. CEO Cheol Hyuk JANG expressed excitement about SM's future prospects, including TVXQ's 20th anniversary album and concerts. He also mentioned the upcoming release of several albums and singles from various artists under the SM Entertainment label.
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