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(Photo = SM entertainment) |
[Alpha Biz= Reporter Paul Lee] On the 8th, SM Entertainment disclosed its first-quarter consolidated revenue of 2.201 trillion won and operating profit of 155 billion won. Revenue increased by 7.9% compared to the same period last year, while operating profit decreased by 14.9%.
The increase in concert scale and growth in advertising and drama production revenue contributed to the rise in revenue. However, the expansion of the multi-production system introduced in the second quarter of the previous year led to increased personnel and initial operating costs for new subsidiaries, resulting in a slight decrease in operating profit.
Looking at business segments, sales of newly released albums in the first quarter reached 2.76 million units, surpassing the 2.15 million units recorded in the same period last year. NCT DREAM (2.46 million units) achieved double platinum status, demonstrating influence in both domestic and international music markets. NCT WISH, which debuted officially in February, secured the top spot on major music charts in Korea and Japan, marking a successful debut. Concert revenue also increased by 21% year-on-year, driven by large-scale concerts featuring NCT 127, SHINee, and TVXQ.
KeyEast, a subsidiary, achieved a turnaround to profitability with an operating profit of 700 million won, attributed to the expansion of drama production revenue. SM C&C reduced its deficit compared to the same period last year, benefiting from increased revenue in advertising promotions and travel businesses.
Alphabiz Reporter Kim SangJin(hoondork1977@alphabiz.co.kr)
