K-pop powerhouse attributes rise to streak of million-selling albums, strengthened intellectual properties

SM Entertainment's corporate logo (SM Entertainment)
SM Entertainment's corporate logo (SM Entertainment)

K-pop powerhouse SM Entertainment reported a stark rise in third-quarter earnings, backed by a robust portfolio of intellectual properties and a streak of million-selling albums, according to the company on Wednesday.

SM Entertainment reported sales of 321.6 billion won ($222.18 million) and an operating profit of 48.2 billion won, reflecting a 32.8 percent increase in revenue and a significant 261.6 percent increase in operating profit on-year. The agency's net profit also surged 1,107 percent year-on-year to 44.7 billion won, reflecting a strong performance across all divisions, including music production, artist management, intellectual property expansion and global business operations.

The company attributed its strong performance to a surge in physical album and digital music sales led by NCT Dream, aespa and NCT Wish -- each of whom achieved million-seller status this year. SM Entertainment also reported steady growth in concert and merchandise revenue, driven by an expanded lineup of large-scale live performances across its artist roster.

In particular, Super Junior's 20th anniversary, along with aespa and Riize, who continue to broaden their global reach, demonstrated the strength of SM's brand and artists across generations, indicating the company's portfolio remains sustainable over time.

The agency also announced plans through the end of this year and the first quarter of next year. Taeyeon of Girls' Generation will release an album celebrating the 10th anniversary of her solo album while NCT Dream and WayV will each release mini albums and Max Changmin of boy band TVXQ will put out a Japanese single.

Minho of Shinee, NCT's Doyoung and Jungwoo, Riize and aespa's singles are also in the lineup. Exo and Irene of Red Velvet's full-length albums, NCT U's mini album and Ten's solo album are to come out early next year, according to the company.

"SM's flagship artists continued to demonstrate their enduring influence, while our rookie acts achieved rapid growth, injecting fresh energy into the company," said SM Entertainment CEO Jang Cheol-hyuk in a statement. "This cross-generational synergy is reinforcing our IP portfolio and exemplifies the virtuous cycle of the sustainable IP ecosystem we strive to build."


junheee@heraldcorp.com