SM Entertainment reports Q1 revenue of 279.1 billion won and operating profit of 38.6 billion won, with revenue up 20.6% and operating profit up 18.5% year-on-year.

*This content was translated by AI.

SM Entertainment (041510, representatives Jang Cheol-hyeok and Tak Young-jun, hereinafter SM) announced on the 6th that its consolidated revenue for the first quarter of 2026 reached 279.1 billion won, with an operating profit of 38.6 billion won. This represents a year-on-year increase of 20.6% in revenue and 18.5% in operating profit.

Separate revenue for the first quarter rose 14.4% year-on-year to 189.3 billion won, with concert revenue up 56.0% and MD and licensing revenue up 20.3%, maintaining steady growth on a separate basis. Operating profit recorded 38.8 billion won, a 5.9% decrease year-on-year, influenced by one-time music streaming revenue from the same period last year; however, excluding this one-time factor, the figure was higher than the prior-year period. Net income for the period increased 20.9% year-on-year to 38.9 billion won.

These results reflect increased album sales from core IPs, growth in concert revenue due to expanded performance scale, growth in the MD and licensing segment, the consolidation effect of Dear U, and expanded revenue from major subsidiaries. Consequently, the proportion of revenue from concerts and IP-based sources has increased, and the revenue structure continues to diversify.

In the first quarter, global tours by core IPs including Super Junior (SUPER JUNIOR), NCT DREAM, aespa, RIIZE, and NCT WISH contributed to expanded performance revenue. In the MD and licensing segment, sales of light sticks and planned MD items increased, driven by pop-up events linked to the release of EXO's regular album, the NCT WISH project, and the aespa tour.

Performance by major subsidiaries also improved. SM C&C saw growth in advertising and management revenue, SM Japan's revenue increased due to expanded overseas activities by the company's artists, and Dear U continues to contribute stable profits since its consolidation. Operating profit from subsidiaries also turned profitable compared to the same period last year, improving profitability.

SM continues to pursue strengthening IP competitiveness and global expansion based on its 'SM NEXT 3.0' strategy, reinforcing its mid-to-long-term growth foundation through enhanced content production capabilities and expansion of its IP portfolio.

Debuting last year, rookie group Hearts2Hearts has rapidly expanded its achievements in the global market. Their representative songs 'The Chase' and 'STYLE' each surpassed 100 million cumulative streams on Spotify, and 'RUDE!' continues to show strong global performance with overseas streaming accounting for approximately 85% of its total. Additionally, the group recorded the number one position among K-pop girl group songs released in 2026 on the Spotify Global Top 200 chart.

SM plans to continue the growth trend in album, music streaming, and concert revenue in the second and third quarters with a competitive lineup of artists. In the second quarter, regular albums by Taeyong, aespa, and NCT WISH, mini albums by SHINee, RIIZE, and Hearts2Hearts, and a single by Ryeowook are scheduled for release. In the third quarter, regular albums by Taeyeon and NCT 127, mini albums by Super Junior-83z, Red Velvet, and WayV, and new releases by Yesung, Minho, and Yuno Yunho are set to be released consecutively.

Activity in the concert segment will also continue actively, centered on global stages. In the second and third quarters, aespa will launch a new global tour starting in Seoul and extending to North America, Central America, and Europe, alongside EXO's tour concerts and solo concert tours by Yuno Yunho and Irene following their debuts.

<© STARNEWS. All rights reserved. No reproduction or redistribution allowed.>

*This content was translated by AI.