SM Entertainment(SM Entertainment(041510)) posted solid results in the second quarter this year on the back of artists' expanded global concert tours and growth in the MD (merchandise) and licensing businesses.
SM said on the 5th that it recorded revenue of 349.6 billion won and operating profit of 52.9 billion won in the second quarter this year. Compared with the same period last year, revenue rose 15.4% and operating profit increased 11%.
The company said the results reflect, across the board, the expansion of global performances centered on legacy IP, growth in the MD and licensing businesses, and improved performances by major subsidiaries.
In particular, global concert tours by artists including TVXQ!, Super Junior, EXO, aespa, and NCT WISH drove an increase in performance revenue. Large-scale sales of concert MD, an NCT 10th debut anniversary pop-up, and pop-up store operations tied to new releases by aespa, RIIZE, and NCT WISH also boosted fandom spending and supported improved results.
Major subsidiaries also continued to grow. Dream Maker, a concert production company, significantly improved profitability thanks to expanded production of domestic concerts and increased collaboration with headquarters. DearU, a fan communication platform, continued its growth trajectory on the back of subscription fee hikes and the shift to web payments.
SM plans to sustain growth in the second half through album releases by major artists and global tours.
In the third quarter, releases are planned for a Red Velvet EP and an NCT 127 studio album, as well as EPs by Minho and WayV, and a single by Girls' Generation's Hyori Su. In the fourth quarter, studio albums by Yesung, Taeyeon, Jaehyun, and NCT DREAM, EPs by Choikang Changmin, Xiaojun, and NCT WISH, and a single by Hearts2Hearts will be unveiled.
Performances will also continue. Starting with shows at Seoul's Gocheok Sky Dome on the 7th–8th, aespa will embark on a new global tour that includes North America and Europe. U-Know Yunho, Super Junior-83z, and NCT 127 also plan to continue concert tours at home and abroad.