SM Entertainment Q3 2024 financial results have been officially released, showing a consolidated operating profit of 35.5 billion won and revenue of 291.1 billion won. Along with the earnings report, the agency announced a robust artist lineup and global tour schedules spanning the fourth quarter and the first quarter of next year.
During a public disclosure, SM Entertainment explained that while revenue and operating profit decreased by 9.5% and 26.4% year-over-year respectively, net income turned into a deficit primarily due to foreign exchange losses driven by the strong Korean won. The company noted that strategic expansions into overseas performances and intimate fan communication events reduced domestic album releases, impacting physical album, digital music, and concert revenues.
Despite the dip in specific sectors, the appearance, MD (merchandise), and licensing divisions experienced notable growth. Driven by increased artist advertising and promotional activities, strong MD sales, and successful IP collaborations, appearance sales reached 29.2 billion won while MD and licensing sales hit 62.1 billion wonβmarking 21.3% and 23.5% increases compared to the same period last year. Major subsidiaries also performed well, with DEARU recording an operating profit of 9.2 billion won (up 5.6%) and both DREAM MAKER and KeyEast successfully returning to profitability.
Q4 and Early Next Year Comeback Lineup
SM Entertainment plans to maintain continuous growth momentum through an active release schedule stretching from the fourth quarter into early next year. The fourth-quarter lineup features new mini-albums from NCT WISH, Yesung, Changmin, and Xiaojun, alongside singles from RIIZE and a Japanese mini-album from Red Velvet’s Irene & Seulgi. Additionally, new full-length albums from NCT DREAM and Taeyeon, a sub-unit mini-album from EXO’s Kai and Sehun, and a Japanese single from U-Know Yunho are set to be unveiled.
The momentum continues into the first quarter of 2027 with an impressive comeback schedule including a full-length album from RIIZE, a mini-album from Hearts2Hearts, full-length albums from Seulgi and Jaehyun, a single from SUPER JUNIOR-83z, a Japanese single from NCT’s Jeno and Jaemin, and a Chinese single from Chenle.
Global Tours and Future Strategy
Following a successful North American tour, aespa is expanding its reach with a European tour spanning nine cities, including London, Paris, and Stockholm. Other major events lined up include NCT WISH’s sold-out concert following their historic first entry into the Gocheok Sky Dome, NCT 127’s fifth tour, an EXO encore concert, WayV concerts in major Chinese cities, solo concert tours for Changmin and Minho, Yesung’s 10th-anniversary solo tour, Japanese performances by U-Know Yunho, Chanyeol, and Irene & Seulgi, and a fan-con tour by SUPER JUNIOR-83z.
Starting early next year, SM Entertainment aims to build a more balanced IP portfolio by actively expanding legacy artist activities, accelerating the growth of junior artists, and aggressively entering new global markets.
