SM Entertainment reports 13% increase in sales and 27% increase in operating profit, achieving record-breaking album sales and world tours.

SM Entertainment announced its operating profit and performance. On the 7th, SM reported that it had achieved a consolidated sales of 960 billion won (approximately 106.96 billion yen) and an operating profit of 115.4 billion won (approximately 12.85 billion yen) based on the 2023 standard. This is a 13% increase in sales and a 27% increase in operating profit compared to the previous year. In addition, the net profit for the period increased by 41.2% to 115.8 billion won (approximately 12.93 billion yen) compared to the previous year. SM achieved this performance due to the strong sales of new albums released last year and the expansion of offline concerts by artist. The number of albums and music sources released last year increased by 12% to 64, and the sales of new albums released last year reached 20.1 million, achieving the highest record in history, an increase of 67% from the previous year. There were 340 concerts, a significant increase of 224% from the previous year. NCT DREAM's 3rd full album "ISTJ" recorded "quadruple million seller (exceeded 4 million copies)" and aespa's 3rd mini album "MY WORLD" recorded "double million seller (exceeded 2 million copies)", and EXO, NCT, NCT 127, and RIIZE also achieved million seller status. NCT DREAM successfully held 41 performances in 26 regions around the world, including North America, South America, Europe, and Asia, and aespa also held 31 performances in 21 regions around the world, including North America, Europe, and Asia, showing active expansion of world tours by affiliated artists. The consolidated sales for the fourth quarter of last year were 250 billion won (approximately 27.84 billion yen), and the operating profit was 10.9 billion won (approximately 1.21 billion yen), a decrease of 3.4% and 51.7% respectively from the previous year. Sales of advertising and content-related affiliated companies decreased, and operating profit decreased due to the impact of the new incorporation of SM brand marketing. Separate standard sales for the fourth quarter increased by 7.2% to 163.7 billion won (approximately 18.23 billion yen) from the previous year, and operating profit decreased by 13.8% to 20.6 billion won (approximately 2.29 billion yen) from the previous year. SM will also showcase a diverse lineup of artists this year. Starting with RIIZE's single "Love 119", which was released in January and dominated the music charts, the activities of major artists such as the debut of the new boy group NCT WISH's single (Korea/Japan) this month and the release of NCT DREAM's mini album in March are expected to continue. Based on this, the plan is to achieve consolidated sales of 1.18 trillion won (approximately 131.42 billion yen) and an operating profit of 160 billion won (approximately 17.82 billion yen) this year. In particular, a shareholder return policy will also be implemented. Through the board of directors held on this day, SM reported that it had decided to distribute approximately 28.1 billion won and retire 241,379 of its own shares (approximately 1.66 billion yen) for the 2023 fiscal year-end results to improve shareholder value. This is the first time the company has retired its own shares since its establishment. Cash dividends are 1,200 won per ordinary share (approximately 133 yen), with a dividend payout ratio of 34%. SM's CEO, Chang Chul-hyuk, revealed through a press release that "the decision to distribute dividends at the same level as the previous year was made considering the securing of investment sources" and "to continuously enhance corporate value through the improvement of shareholder value by retiring its own shares."