SME Entertainment announced on the 6th that it recorded 302.9 billion won in revenue and 47.6 billion won in operating profit for the second quarter of this year. Revenue increased by 19.3% compared to the previous year, while operating profit grew by 92.4%.
SME explained that the expansion of new album sales, an increase in digital music revenue, and positive performance in the institutional sector for planning and concert merchandise significantly contributed to its success. In particular, the operating profit saw substantial growth due to double-digit revenue growth and improved revenue mix. Additionally, major subsidiaries maintained overall stable performance due to the expansion of artist activities.
SME plans to continue its growth in the second half of this year by enhancing artist-centered intellectual property activities and expanding onto the global stage. Super Junior, celebrating its 20th anniversary this year, is unfolding various content and commemorative projects to expand its reach to fans, while BoA has released a regular album to mark her 25th anniversary.
In addition, the regular album of NCT Dream, the Japanese single of Dongbang, the mini album of WayV, and the debut single of XngHan&Xoul have been revealed, along with the release of regular and mini albums from SHINee's Key and Red Velvet's Joy. Furthermore, the mini albums of aespa, NCT Wish, and NCT Haechan's first solo regular album, along with the mini album releases from EXO's Suho and Chanyeol, are also scheduled.
The concert sector is also active. RIIZE, which is currently on its first world tour, is set to expand from Asia to North America, showcasing diverse performances in 22 regions worldwide. Recently, aespa's solo concert sold out all seats, including restricted view seats, and will be part of a world tour starting in Seoul and moving to major cities globally. Additionally, various artists including Red Velvet-Irene & Seulgi, NCT Dream, EXO's Kai, and SHINee's Key are expected to continue their active performance activities domestically and internationally.
In particular, SME is establishing a multifaceted collaboration system for content production, distribution, and fandom marketing in the Chinese local market through a strategic partnership with Tencent Music Entertainment (TME), the largest music platform corporation in China with 550 million monthly users. Based on this, SME plans to build a comprehensive idol success model connected across production, distribution, performances, and data.
Jang Cheol-hyuk, co-CEO of SME, noted, "SME is gaining competitiveness across all generations in the K-pop market through the active activities of both long-loved existing artists and new artists," adding, "In the second quarter of this year, we visually demonstrated that the all-encompassing content business centered around intellectual property could translate into results, and in the second half, we will pursue sustainable growth through the expansion of artist intellectual property-based content and global activities."