SM Entertainment Soars in Q3 2025 with Record-Breaking Performance

SM Entertainment announced its impressive financial results for the third quarter of 2025 on the 5th, achieving consolidated revenue of 321.6 billion KRW and operating profit of 48.2 billion KRW.

These figures represent a significant year-on-year increase of 32.8% in revenue and a remarkable 261.6% surge in operating profit. Net profit also saw a dramatic rise of 1,107%, reaching 44.7 billion KRW, showcasing robust growth across all sectors.

On a separate basis, the company posted revenue of 224.5 billion KRW and operating profit of 40.2 billion KRW, up 30.5% and 48.6% respectively compared to the previous year. Net profit increased by 101.8% to 32.3 billion KRW.

This outstanding performance was driven by the success of new releases from key artists including NCT DREAM, aespa, and NCT WISH, which achieved million-seller status, boosting album and music sales. Concerts and merchandise sales also demonstrated a solid upward trend due to expanded tour scales.

Notably, Super Junior, celebrating their 20th anniversary, and aespa and RIIZE, who have expanded their global presence, highlighted the sustainability of SM's IP portfolio spanning multiple generations. New group H.B.T. is also emerging as a next-generation IP through global fandom growth and brand collaborations.

SM is reinforcing its 'inter-generational IP virtuous cycle structure' by harmonizing the stable activities of its existing artists with the rapid growth of new IPs. As part of the SM 3.0 strategy, the company is accelerating the establishment of a sustainable IP ecosystem through the 'SMTR25' project, which focuses on discovering new artists and expanding globally.

Looking ahead, SM plans to maintain active music releases in Q4 2025 and Q1 2026. Following recent releases from H.B.T., EXO's Chanyeol, and NCT's Yuta, U-Know's solo debut full album was released today. The fourth quarter will feature a best-of album from Girls' Generation's Taeyeon celebrating her 10th solo anniversary, mini-albums from NCT DREAM and WayV, a Japanese single from Max Changmin of TVXQ!, and singles from Minho of SHINee, Doyoung of NCT, RIIZE, Jungwoo of NCT, and aespa.

The first quarter of next year will see full-length albums from EXO and Red Velvet's Irene, mini-albums from TEN of NCT U and NCT WISH, singles from H.B.T. and Hyoyeon of Girls' Generation, and a Japanese single from RIIZE, offering diverse content for both domestic and international fans.

The concert segment will also see active global engagement. TVXQ!'s Max Changmin's Japan tour, NCT's Yuta's first solo concert tour in Japan, and EXO's Chanyeol's Japan performances, along with tours by Key of SHINee, aespa, NCT DREAM, WayV, and NCT WISH across major Asian cities, are scheduled. Super Junior will embark on a 20th-anniversary tour, RIIZE will launch their first world tour, and EXO, SHINee's Minho, and TVXQ! will connect with fans through fan meetings.

Co-CEO Jang Cheol-hyuk stated, "This quarter, SM's representative artists continued their strong legacy, while new artists added fresh vitality. This inter-generational flow is solidifying our IP portfolio, demonstrating the virtuous cycle structure of the sustainable IP ecosystem we aim for." He added, "Based on the SM 3.0 strategy, we will advance our artist IP-centric business and complete a sustainable growth model in the global market through next-generation IP incubation and focus on core businesses."

Netizens are buzzing with excitement over SM's stellar financial report, with comments like "SM really knows how to deliver! So proud of the artists' hard work," and "Can't wait for all the upcoming releases!" The report highlights the successful synergy between established artists and the rapid growth of new talent.