SM Entertainment, the powerhouse behind popular K-pop groups like NCT 127, EXO, and aespa, recently shared its Q4 2024 earnings report. The company saw a 9% increase in revenue compared to last year, making strides after a year of fluctuating financial performance.
For the fourth quarter, SM Entertainment reported revenues of KRW 273.8 billion (about USD $195.94 million). Operating profit experienced a remarkable surge, jumping 275.6% year-over-year to KRW 33.9 billion (around $24.26 million). This boost in profit was attributed to higher sales and changes in compensation structures.
Despite the growth in operating profit, SM still faced challenges with net profit. The company’s net loss for Q4 stood at KRW 24.1 billion (approximately $17.25 million), but it was significantly less than the loss of KRW 52.8 billion from the previous year.
In a move to enhance shareholder returns, the company announced it would retire 460,000 shares, making up 2% of outstanding stocks, valued at KRW 40.3 billion (about $27.8 million). Co-CEO Tak Young-jun highlighted that previous share buybacks had already led to a total return ratio of over 80%.
By the end of the day, SM’s stock price rose by 5.4% to KRW 92,300 (about $63.61).
The parent company reported an 11.0% year-over-year increase in revenue to KRW 181.8 billion (around $130.1 million). Though recorded music revenue saw a decrease of 5.1%, concert revenue soared by 88.2%, totaling KRW 22.5 billion (around $16.1 million). This rise is linked to an expanded concert schedule for K-pop acts, meeting growing global demand.
Specific highlights included NCT DREAM’s 2024 world tour, which concluded successfully in Seoul, and sold-out shows for NCT WISH and TVXQ! in Japan. These live performances also boosted merchandise and licensing revenue, which grew by 51.9% to KRW 51.2 billion (about $36.64 million).
Overall, operating profit rose by 83.2%, totaling KRW 35.8 billion (around $25.62 million). Notably, net income returned to positive territory at KRW 8.3 billion (about $5.94 million), compared to a loss a year prior.
Revenue from SM’s subsidiaries also reflected growth, up by 4.1% year-over-year to KRW 135.4 billion (about $96.9 million). Among its subsidiaries, KEYEAST led the charge with a 110.0% surge in revenue due to increased TV drama production.
CEO Jang Cheol-hyuk discussed the company’s 30th anniversary, heralding new initiatives under the motto “the culture, the future.” SM is celebrating with a series of SMTOWN concerts, the first of which took place in Seoul during Lunar New Year.
As part of its strategic moves, SM also teased the upcoming debut of a new girl group, Hearts2Hearts, set for February 24, along with plans for a new boy group, SMTR 25, with specific timelines yet to be revealed.
Jang emphasized the company’s commitment to steering the future of the global K-pop industry, marking a new chapter in its storied history.
