SM Entertainment (SME) posted operating profit of 48.2 billion won on a consolidation basis for the third quarter of this year. Increased revenue in the business institutional sector centered on concerts and merchandising (MD), and the effect of bringing the fan communication platform DearU (DEARU) into consolidation, lifted results.
On the 5th, SM Entertainment disclosed that third-quarter sales on a consolidation basis were provisionally tallied at 321.6 billion won, up 32.8% from 242.2 billion won a year earlier. Over the same period, operating profit rose 261.6% from 13.3 billion won to 48.2 billion won. Net profit jumped 1,107% from 3.7 billion won to 44.7 billion won.
By business institutional sector, all institutional sectors including concerts, albums, and MD showed even growth. Concert revenue grew 37.5% from 38.2 billion won a year earlier to 52.5 billion won; album revenue grew 32.7% from 72.9 billion won to 96.7 billion won; and MD revenue grew 32.8% from 37.9 billion won to 50.3 billion won.
Among subsidiaries, revenue rose on the back of DearU's consolidation effect. Boosted by increases in subscriber numbers and subscription fees, DearU recorded third-quarter revenue of 22.3 billion won. SM LDG posted 18.5 billion won, up 84% from 10.0 billion won a year earlier, as album printing revenue increased.