SM Entertainment (hereafter SM, representatives: Jang Cheol-hyeok·Tak Young-jun) said on the 5th that it achieved consolidated third-quarter 2025 operating results of ▲sales of 321.6 billion won and ▲operating profit of 48.2 billion won. This represents a year-on-year increase in sales of 32.8% and operating profit of 261.6%, and net income also rose 1,107% to 44.7 billion won, showing marked growth across all sectors.
On a separate basis, sales were 224.5 billion won and operating profit was 40.2 billion won, increases of 30.5% and 48.6%, respectively, from the same period last year. Net income was 32.3 billion won, up 101.8% year on year. New releases from major artists such as NCT DREAM, aespa and NCT WISH recorded million-seller status, driving growth in album and digital music sales, and concert and merchandise sales also showed steady gains as concert scale expanded. In particular, Super Junior, celebrating its 20th anniversary, and aespa and RIIZE, which have expanded their presence in the global market, demonstrated the sustainability of an IP portfolio spanning generations, and rookie group Hearts2Hearts established itself as a next-generation IP through global fandom growth and brand collaborations.
SM is strengthening a "virtuous cycle of IP across generations" as stable activities of existing artists and rapid growth of new IP harmonize. As part of the SM 3.0 strategy, the company is accelerating the discovery of new artists and global expansion through the next-generation IP incubating project "SMTR25," pushing to build a sustainable IP ecosystem.
SM will continue active music activities in the fourth quarter and the first quarter of next year. Beginning last month with Hearts2Hearts' first mini-album, EXO member Chanyeol's Japanese mini-album and NCT Yuta's Japanese full-length album were released, and today TVXQ! member U-Know Yunho's first solo full-length album was released. In the fourth quarter, Girls' Generation member Taeyeon will release a best album commemorating the 10th anniversary of her solo debut, and mini-albums from NCT DREAM and WayV, a Japanese single from TVXQ! member Max Changmin, and singles from SHINee's Minho·NCT Doyoung·RIIZE·NCT Jungwoo·aespa are scheduled for release.
In the first quarter of next year, a variety of content aimed at domestic and international fans is expected to follow, including full-length albums by EXO and Red Velvet member Irene, mini-albums by NCT U·Ten, a Japanese mini-album by NCT WISH, as well as singles by Hearts2Hearts and Girls' Generation member Hyoyeon, and a Japanese single by RIIZE.
The concert sector will also continue active activities meeting fans around the world on stages in major domestic and international cities. In addition to TVXQ! member Max Changmin's Japan tour, NCT Yuta's first solo concert tour in Japan and EXO member Chanyeol's Japan performances, SHINee's Key·aespa·NCT DREAM·WayV·NCT WISH will tour major Asian cities to present diverse performances. Super Junior will celebrate its 20th anniversary with a commemorative tour, RIIZE will expand engagement with global fans on its first world tour, and EXO, SHINee's Minho and TVXQ! plan to communicate with domestic and international fans through fan meetings.
Co-CEO Jang Cheol-hyeok said, "This quarter, SM's flagship artists continued to show strong resilience, and rookie artists grew rapidly, adding new vitality," and added, "This cross-generational trend is strengthening the IP portfolio, and it well illustrates the virtuous cycle of a sustainable IP ecosystem that our company aims for." He added, "Based on the SM 3.0 strategy, we will refine our artist IP-centered business and complete a sustainable growth model in the global market through next-generation IP incubating and focusing on core businesses."
Meanwhile, SM is strengthening profitability and financial stability through portfolio restructuring focused on core businesses and efficient resource management. By pursuing a selection and concentration strategy such as the merger with SM Studios and the sale of noncore assets, it is achieving both content production efficiency and enhancement of shareholder value.
[Photo] SM
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