SM Entertainment (hereinafter SM) announced on the 7th that it recorded consolidated sales of 231.4 billion won, operating profit of 32.6 billion won, and net profit of 242.9 billion won in the first quarter of 2025. Compared to the same period last year, sales increased by 5.2%, operating profit by 109.6%, and net profit surged by 1,852.4% due to the acquisition of Dear U shares.
On a separate basis, sales were 165.5 billion won, operating profit was 41.3 billion won, and net profit was 32.2 billion won, representing increases of 21.5%, 105.2%, and 94.1%, respectively, compared to the same period last year. Although the sales of new albums decreased compared to the previous year, the increase in music sales, expansion of global concerts, and growth in MD/IP licensing revenue drove the improvement in performance.
In the first quarter, the rookie girl group Hearts2Hearts surpassed 400,000 copies in first-week sales with their debut single, successfully building a new fandom and receiving a positive response from global music fans. SMTR25, composed of 25 trainees, has been generating high buzz even before their debut through content releases, raising expectations for their activities post-debut.
Additionally, 'Dear U', which was acquired in March, is expected to be included as a consolidated subsidiary starting in the second quarter, reflecting in the consolidated results. Collaborations with Tencent Music for entry into China, expansion of SM IP placements, and acceleration of global region and IP expansion are also anticipated to create medium- to long-term synergy effects.
In the MD/IP licensing sector, various pop-up stores, including RIIZE's character pop-up store and the SHINee Key and Hello Kitty collaboration project, have been held, expanding collaborations with global brands and achieving revenue diversification.
Alongside this, SM is focusing more on securing new growth engines by actively promoting global activities for artists and aiming for high growth in the secondary IP business this year.
In April, NCT WISH achieved its first million-seller with its second mini-album, breaking its own record, while EXO member Kai continues to be active as a world-class performer with the release of his fourth mini-album.
In May, RIIZE's first full-length album, Red Velvet-Irene & Seulgi's mini-album, and a SHINee single will be released, followed by the release of NCT Doyoung's second solo album, as well as singles from Hearts2Hearts and aespa.
In the third quarter, various artists are set to release new albums, including SUPER JUNIOR's regular album to celebrate their 20th anniversary, NCT DREAM's new regular album, and aespa's mini-album.
Additionally, major concert tours will be held in cities around the world, including Kai's solo concert tour, RIIZE's first concert tour after debut, Red Velvet-Irene & Seulgi's concert tour, and NCT DREAM's fourth concert tour, meeting global fans.
Co-CEO Jang Cheol-hyuk stated, “The rapid establishment of new IPs and the IP monetization strategy have shown growth,” and added, “We will continue to promote diversification of the IP business and accelerate expansion into the global market based on the SM 3.0 strategy, while also achieving qualitative growth based on revenue growth and improved profitability.”
[Lee Da-kyum, Star Today Reporter]
