SM Entertainment logged revenue of 349.6 billion won ($245.6 million) and operating profit of 52.9 billion won for the second quarter, up 15.4 percent and 11 percent, respectively, from a year earlier, driven by strong growth in its concert businesses.
The entertainment company’s revenue slightly exceeded the market consensus of 331.6 billion won, compiled by market tracker FnGuide. Its operating profit however came in slightly below expectations of 52.4 billion won.
The company attributed its topline growth to concert revenue and increased sales at key subsidiaries.
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K-pop acts including TVXQ, Super Junior, EXO, aespa and NCT Wish toured during the second quarter, which boosted revenue from concerts and merchandise sales. Pop-up stores of aespa, Riize and NCT Wish were also held during the second quarter, pushing revenue higher.
Subsidiaries also contributed to growth. Dream Maker, its concert production subsidiary, saw profits rise thanks to an increase in domestic concert productions. DearU, which operates private chat service bubble, grew as profitability improved due to subscription fee increases and a shift to web payments.
On a stand-alone basis, SM Entertainment posted revenue of 240.6 billion won in the second quarter, up 9.2 percent from a year earlier. Operating profit on a stand-alone basis fell 4.6 percent to 43.8 billion won.
The entertainment agency has numerous releases and concerts planned for the second half of 2026.
Girl group Red Velvet released its EP “Velvet Summer” on Monday, while boy band NCT 127 is scheduled to release a full-length album in the third quarter. Minho from SHINee and WayV will release EPs, along with a single by Girls’ Generation-HRS, a subunit consisting of members Hyoyeon, Yuri and Sooyoung.
In the fourth quarter, full-length albums from Super Junior’s Yesung, Girls’ Generation’s Taeyeon, NCT’s Jaehyun and NCT Dream are scheduled. Max Changmin of TVXQ, Xiaojun of NCT and NCT Wish will also be releasing EPs, and girl group Hearts2Hearts will release a single.
The concert business will also be active, with aespa launching a new world tour beginning with concerts in Seoul on Friday and Saturday before expanding to North America, Europe and other regions. World tours by U-Know Yunho of TVXQ, Super Junior-83z, Yesung, Ryeowook, NCT 127 and WayV, along with NCT Wish’s fan meet tour, are also scheduled.
