MUSIC
SM Entertainment, sales of 220.1 billion won in the first quarter of this year
Sales increased 7.9% compared to the same period last year. The increase in sales was driven by the expansion of performance scale and increased MD sales. As advertising and drama production sales increased, major affiliate sales also increased. Operating profit decreased slightly due to the increase in personnel due to the establishment of the multi-production system introduced in the second quarter of the previous year and the increase in initial operating costs for new subsidiaries.
On a separate basis, sales in the first quarter were KRW 136.1 billion and operating profit was KRW 20.1 billion, up 6.2% and 3.3%, respectively, compared to the same period last year. Net profit for the period is around 16.6 billion won. Sales in the MD and licensing divisions increased, reflecting large-scale concerts and greeting sales from the previous year.
Looking at each business, sales of new albums released in the first quarter amounted to 2.76 million units, exceeding the same period last year (2.15 million units). NCT DREAM (2.46 million copies) recorded a double million seller, proving its influence in the domestic and international music market. NCT WISH, which officially debuted last February, completed a successful debut by sweeping the top spots on major music charts in Korea and Japan. In particular, concert sales increased by 21% compared to the previous year due to large-scale concerts held by NCT 127, SHINee, and TVXQ.
KEYEAST, an affiliate, recorded an operating profit of KRW 700 million due to increased sales of drama production, turning a profit. SM C&C reduced its deficit compared to the same period last year due to increased advertising promotion and travel business sales. SM BM's consolidation contributed to increased sales, and SMC's sales also increased due to the expansion of artists' activities in Japan.
This year, SM Entertainment will actively promote the strengthening of artists' overseas activities and expand their global fandom. NCT DREAM's third world tour is scheduled, and aespa will also embark on a world tour in a total of 14 regions starting at the end of June. RIIZE also plans to hold its first global fan concert and actively pursue the expansion of its global fandom.
As major singers are scheduled to return one after another, an increase in sales is expected. At the end of May, aespa will release its first full-length album. Suho's third mini album and RIIZE's first mini album are scheduled to be released in June. Following this, Red Velvet and WayV will also release mini albums in the second quarter, Super Junior and Mark will release singles, and NCT DREAM and NCT WISH will also release Japanese singles in the second quarter.
In the third quarter, starting with NCT 127 and Taeyeon's regular albums, Key, Chanyeol, Irene, Jaehyun, and NCT WISH are scheduled to release mini albums. Major artists are expected to actively release new global albums, with WayV, Key, aespa, and RIIZE releasing Japanese singles, and NCT DREAM releasing American singles. In addition, nævis, a virtual artist introduced by SM for the first time, is scheduled to debut in the third quarter, and a new girl group and a new British boy group produced with British entertainment company MOON&BACK are scheduled to debut in the fourth quarter.
In addition, SM Entertainment plans to continue to expand collaboration with Kakao in secondary IP businesses such as webtoons, web novels, and mobile games, thereby solidifying mutual synergy.
CEO Jang Cheol-hyuk said, “We will enhance our global competitiveness by diversifying our portfolio into secondary IP businesses such as virtual artists, new IP debuts, web novels, and games.” CEO Tak Young-jun said, “This year, we plan to strengthen the overseas lineup of artists such as NCT DREAM, aespa, RIIZE, and NCT WISH and actively pursue expansion of global activities to expand fandom around the world.”
Reporter Junho Yoon, Ten Asia delo410@tenasia.co.kr
