K-pop company SM Entertainment has had an impressive fourth quarter in 2024. They reported a revenue of 273.8 billion won (around $189 million), which is a 9% increase from the previous year. Their operating profit significantly improved, jumping to 33.9 billion won ($23 million). Although they faced a net loss, it was reduced to 24.1 billion won ($17 million).
However, recorded music sales took a hit, dropping by 5.1% to 86.0 billion won ($59 million). New album sales fell from 5.51 million units last year to 3.78 million this year. Among their popular groups, NCT Dream sold 1.56 million units and Aespa had sales of 1.1 million. Other artists like WayV and Irene also contributed with 400,000 and 360,000 units sold, respectively.
On a positive note, concert revenue saw an 11.9% boost, reaching 22.5 billion won ($15.5 million). This growth was due to more shows being scheduled. For example, Exo’s Chanyeol performed 14 solo concerts across Southeast Asia, Japan, and China. NCT Dream, who started their world tour earlier, held nine concerts in the last quarter. The surge in concerts, along with special events like pop-up stores, also led to a 33.7% rise in merchandise and licensing revenue, totaling 51.2 billion won ($35.3 million).
Looking ahead, the first quarter promises exciting music releases. SMTOWN will celebrate its 30th anniversary with a new album titled SMTOWN, THE CULTURE, THE FUTURE on February 14. Additionally, Red Velvet’s Seulgi and WayV’s Ten are set to release new EPs, while a new girl group named Hearts2Hearts will debut on February 24 with the single “The Chase.”
SM Entertainment is making this year special by launching new initiatives as part of their 30th anniversary celebrations. Their new slogan, “The Culture, The Future,” reflects their legacy and ambition in the music industry. CEO Jang Cheol-hyuk shared his thoughts on this, emphasizing how music remains at the core of their mission to influence people’s lives positively while also seeking innovation to lead the next phase of K-pop.
In addition to their earnings update, SM Entertainment’s board approved a retirement plan for some treasury shares, valued at 40.3 billion won ($27.8 million). This is part of their strategy to manage outstanding shares, following previous retirements in February and August.
Following these announcements, SM Entertainment’s stock rose by 2.9%, reaching 95,000 won ($65.42). So far this year, their shares have climbed by 25.7%, indicating strong investor confidence.
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