SM Entertainment (hereinafter SM, CEO: Jang Cheol-hyeok, Tak Young-jun) announced on the 7th that it recorded a consolidation basis ▲revenue of 231.4 billion won ▲operating profit of 32.6 billion won ▲net profit of 242.9 billion won in the first quarter of 2025. Compared to the same period last year, revenue increased by 5.2%, operating profit increased by 109.6%, and net profit surged by 1,852.4% due to the acquisition of DearU equity.
On a separate basis, revenue was 165.5 billion won, operating profit was 41.3 billion won, and net profit was 32.2 billion won, representing increases of 21.5%, 105.2%, and 94.1%, respectively, compared to the same period last year. Although new album sales decreased compared to the same period last year, the increase in music sales, expansion of global concerts, and growth in MD/IP licensing revenue drove the improvement in performance.
In the first quarter, the rookie girl group Hearts2Hearts debuted with their single, surpassing 400,000 copies sold in the first week after release, building a new fandom and receiving a positive response from global music fans. Additionally, SMTR25, consisting of 25 trainees, has formed a significant following even before their debut through content releases, raising expectations for their future activities.
Moreover, the recently acquired 'DearU' from last March is expected to be included as a consolidated subsidiary starting in the second quarter, impacting the consolidated performance. Collaborations with Tencent Music for entry into China, expansion of SM IP, and acceleration of global regional and IP expansion are also anticipated to provide medium- to long-term synergy.
In the MD/IP licensing institutional sector, various pop-up stores such as the character pop-up store of RIIZE and the SHINee Key and Hello Kitty collaboration project have been held, expanding collaborations with global brands and diversifying revenue.
In addition, SM will focus more on securing new growth engines by actively promoting artists' global activities and aiming for high growth in the second IP business this year.
In April, NCT WISH released their second mini album, achieving their first million seller after debut, breaking their own record, while EXO member Kai continues his active activities as a world-class performer by showcasing his fourth mini album.
In May, RIIZE's first full album, Red Velvet-Irene & Seulgi's mini album, and a SHINee single will be released. Following that, NCT Doyoung's second solo album, as well as Hearts2Hearts' single and aespa's single will be unveiled.
In the third quarter, a regular album from SUPER JUNIOR, which celebrates its 20th anniversary, and new regular albums from NCT DREAM and a mini album from aespa are scheduled for release, featuring a diverse lineup of artists.
Additionally, a solo concert tour for Kai, RIIZE's first concert tour after their debut, Red Velvet-Irene & Seulgi's concert tour, and NCT DREAM's fourth concert tour will take place in major cities around the world, meeting global fans.
Co-CEO Jang Cheol-hyeok noted that "the rapid settlement of new IPs and strategies for monetizing IPs have shown growth," and added, "We will continue to push for diversification of IP businesses and accelerate expansion into the global market based on the SM 3.0 strategy, as well as ensuring qualitative growth based on revenue growth and profitability improvement."
[Photo] SM
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