SM Entertainment, the South Korean entertainment giant behind K-pop groups like EXO, aespa, and SHINee, reported a 9% increase in its consolidated revenue for Q4 of 2024, reaching $185.2 million, compared to the same period last year.
Fourth-quarter earnings
The revenue boost was primarily attributed to a surge in concert income, increased merchandise and licensing sales, expanded drama production, and an uptick in artist activities, particularly in Japan, according to the company’s earnings report released on Monday.
On a standalone basis, SM Entertainment’s parent company reported a solid 11% growth, reaching $123 million. This increase was largely driven by concert tours, merchandise sales, and licensing, which saw year-on-year growth of 88.2% and 51.9%, respectively. Popular acts like NCT WISH, NCT DREAM, TVXQ!, and EXO’s Chanyeol, who expanded their tour scales, were pivotal contributors to this growth. Additionally, concert-related merchandise and pop-up stores added $12 million to the overall revenue.
However, physical album and digital music revenue saw a 5.1% dip year-on-year, primarily due to a 31% decrease in new album sales, with 3.8 million copies sold in Q4 2024, compared to 5.51 million in the same quarter of 2023.
Operating and net profits
SM Entertainment’s consolidated operating profit stood at $23 million, reflecting a significant 275.6% rise from the previous year. The company attributed this impressive performance to strong results from both its headquarters and subsidiaries, as well as performance-based bonuses and changes in its sales mix. However, net losses for the quarter amounted to $16.3 million.
On a standalone basis, SM’s operating profit surged by 83.2%, reaching $24.2 million. The company also turned a net profit of $5.6 million, driven by higher revenue and operating profits, along with lower corporate tax expenses.
Revenues from subsidiaries, including SM C&C and KEYEAST, grew by 4.1% year-over-year, totaling $91.6 million.
Upcoming releases
As SM Entertainment celebrates its 30th anniversary this year under the slogan “The Culture, The Future,” it has exciting plans for the future. The company will release new brand films, broadcast programs, and host the SMTOWN LIVE 2025 World Tour.
Looking ahead to the first half of 2025, SM has unveiled a series of anticipated releases. Red Velvet’s Seulgi and WayV’s Ten will release mini-albums in the first quarter. On February 24, SM’s new girl group, Hearts2Hearts, will debut, marking the company’s first new girl group in over four years. The company also teased the launch of a new boy group, SMTR25, in the year’s second half.
In the second quarter, artists such as RIIZE, NCT WISH, WayV, aespa, NCT’s Doyoung and Mark, and EXO’s Kai are expected to release new music.