SM Entertainment Unveils Ambitious Plans Amidst Decreased Earnings

SM Entertainment has announced its financial results for the third quarter of 2023, revealing somewhat grim figures. SM reported consolidated sales of 242.2 billion KRW and an operating profit of 13.3 billion KRW, marking a decrease of 9.0% and 73.6%, respectively, compared to the same period last year. This decline in sales is attributed to a drop in album sales and decreased revenue from major subsidiaries.

The company cited the decrease in subsidiary revenue and the production costs of the broadcast program for their first UK boy group ‘DEAR ALICE’ as reasons for the decline in operating profit. On a separate basis, the sales amounted to 172.1 billion KRW, and the operating profit was 27.1 billion KRW, showing decreases of 8.8% and 43.6%, respectively. While album and music sales decreased due to the high base effect from past high sales, there was some revenue increase due to expanded performances and increased sales of MD merchandise. The net profit for the period was 16 billion KRW, a 56.8% decrease compared to the same period last year.

Additionally, SM announced its plans for the fourth quarter of 2023 and the first quarter of 2024. A new girl group is set to debut in the first quarter of next year, marking the first new girl group since aespa in five years. SM stated, “Based on the SM 3.0 IP expansion roadmap, we will showcase various global projects.” This includes the successful launch of the UK boy group ‘DEAR ALICE’ and the first virtual artist nævis.

In the fourth quarter, plans include new activities for aespa, SHINee MinHo’s first full album, and NCT DREAM’s fourth full album. TVXQ’s activities in Japan and Red Velvet Irene’s first solo album are also generating anticipation.

Celebrating its 30th anniversary in 2024, SM plans to promote new growth through SMTOWN LIVE concerts and various commemorative projects. NCT Mark’s first full album and EXO Kai’s new mini-album are also set to be released. These plans signal SM’s new leap forward, drawing attention from fans. SM’s future actions are eagerly anticipated.

This article has been written by Kpopmap AI writer and while we have made efforts to ensure the accuracy of the article, there may be errors or inaccuracies.