SM Entertainment Leapfrogs HYBE’s 3rd Quarter Net Profit By 10 Times

Despite decreasing numbers, SM Entertainment reigned superior this past quarter.
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Koreaboo

SM Entertainment has disclosed its financial results for the third quarter of 2024, and the numbers have caused quite a shock. Despite a challenging period marked by a slowdown in K-Pop market growth, SM reported over ten times the net profit compared to its main competitor, HYBE.

sm building
| SM Entertainment

In the third quarter, SM Entertainment’s consolidated revenue reached ₩242 billion KRW (about $176 million USD), with an operating profit of ₩13.3 billion KRW (about $9.68 million USD) and a net profit of ₩16.0 billion KRW (about $11.6 million USD). While these figures show an overall decline from last year — revenue dropped by 9%, operating profit by 73.6%, and net profit by 56.8% — SM still emerged ahead of HYBE by a significant margin.

hybe
HYBE’s net profit plummeted 98.6% to 1.4 billion won, according to Hankyung. | HYBE

The revenue decrease stemmed from lower album sales and reduced income from key subsidiaries, coupled with increased expenses related to the production of SM’s first-ever British boy group, DEAR ALICE.

On a standalone basis, SM’s revenue was recorded at ₩172 billion KRW (about $125 million USD), with an operating profit of ₩27.1 billion KRW (about $19.7 million USD) — reflecting declines of 8.8% and 43.6%, respectively — compared to the previous year. The reduction was primarily due to a strong base effect from high album sales in 2023.

However, SM’s expansion of live performances and an increase in concert management resulted in higher concert-related revenue, partly balancing the dip in sales.

Looking forward, SM Entertainment has a busy lineup for the remainder of 2024 and the beginning of 2025. The company is gearing up for a series of activities from its roster of artists, including the much-anticipated debut of Red Velvet‘s Irene and their new girl group.

Several other high-profile releases are planned as well. NCT DREAM will be launching their fourth studio album, while TVXQ! will commemorate their 20th anniversary in Japan with a new Japanese album and a concert tour. NCT members are set to release various solo and group projects, including albums by NCT WISH and Yuta. Taeyeon, WayV, and Naevis are also expected to release new music.

You can read all about their upcoming album release schedule below:

SM Entertainment Divulges Future Plans For Its Artists — Including Some Big Surprises

Source: IZE
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