SM Entertainment reported revenue of 291.1 billion won ($205.2 million) for the quarter, down 9% year over year, as physical and digital music sales and concert revenue declined. Operating profit fell 26% to 35.5 billion won ($25 million), and the company recorded a net loss of 1.1 billion won ($775,000), compared with a profit of 44.7 billion won ($31.5 million) a year earlier.
On a conference call, SM Entertainment CIO Jeongmin Jang attributed the net loss primarily to foreign exchange losses following an appreciation of the Korean won. Jang also said new album sales volume fell by approximately 70% year over year as major artists focused on expanding their overseas activities.
Physical and digital music sales dropped 51% to 47.1 billion won ($33.21 million). SM said it sold 1.67 million copies of releases during the quarter, with NCT 127’s album BLINGY contributing to sales.
Some revenue areas grew. Income from major artists’ album releases and global concert activities, alongside IP licensing collaborations, rose 23.5% to 62.1 billion won ($43.78 million). Revenue from artist appearances also increased 21.3% to 29.2 billion won ($20.6 million), supported by participation in international award ceremonies and music festivals, as well as advertising for apparel and cosmetics.
Sources: Billboard.