SM Entertainment achieved significant growth in Q3 2025, with sales up 32.8% and operating profit up 261.6% compared to last year.
November/5/2025 18:19Related Groups & Members
SM Entertainment announced today (5th) that it achieved consolidated sales of 321.6 billion won (approximately 34.11 billion yen) and operating profit of 48.2 billion won (approximately 5.11 billion yen) for the third quarter of 2025. This represents a 32.8% increase in sales and a 261.6% increase in operating profit compared to the same period last year, with net profit also recording a 1,107% increase to 44.7 billion won (approximately 4.74 billion yen), showing solid growth across all divisions. On an individual basis, sales were 224.5 billion won (23.81 billion yen) and operating profit was 40.2 billion won (4.26 billion yen), marking increases of 30.5% and 48.6% respectively compared to the same period last year. The net profit for the period was 32.3 billion won (3.43 billion yen), up 101.8% year-on-year. Notably, major artists such as NCT DREAM, aespa, and NCT WISH recorded million-selling albums, driving profit growth alongside music sales, and concert and merchandise sales showed a steady upward trend due to expanded concert scales. Particularly, SUPER JUNIOR, celebrating their 20th anniversary, and aespa, which has expanded its presence in the global market, demonstrated the sustainability of their 'IP portfolio' across generations. The rookie group Hearts2Hearts established its position as a next-generation IP through the growth of its global fandom and collaborations with brands. SM is harmonizing the stable activities of existing artists with the rapid growth of new IPs, strengthening the 'virtuous cycle structure of intergenerational IP.' Additionally, as part of the ongoing 'SM 3.0 strategy,' the next-generation IP incubation project 'SMTR25' is accelerating the discovery of new artists and the expansion into global markets, further promoting the establishment of a sustainable IP ecosystem. SM is expected to continue active music activities in the fourth quarter of this year and the first quarter of next year. Following the release of Hearts2Hearts' first mini-album last month, EXO's Chanyeol's Japanese mini-album, and NCT's Yuta's Japanese full album, today, TVXQ's Yunho's first solo full album was released. In the fourth quarter, Girls' Generation's Taeyeon will release a best album to commemorate her 10th solo debut anniversary, and mini-albums from NCT DREAM and WayV, Japanese singles from TVXQ's Changmin, SHINee's Minho, NCT's Doyoung, RIIZE, and singles from aespa are scheduled for release. In the first quarter of next year, a variety of releases targeting fan bases both domestically and internationally are expected, including full albums from EXO and Red Velvet's Irene, a mini-album from NCT's Ten, a Japanese mini-album from NCT WISH, and singles from Hearts2Hearts and Girls' Generation's Hyoyeon, as well as a Japanese single from RIIZE. The concert sector will also continue active activities, meeting fans worldwide in major cities both domestically and internationally. TVXQ's Changmin's Japanese tour, NCT's Yuta's first solo concert tour in Japan, and EXO's Chanyeol's performances in Japan, as well as SHINee's Key, aespa, NCT DREAM, WayV, and NCT WISH will showcase diverse performances across major Asian cities. SUPER JUNIOR will celebrate their 20th anniversary with a tour, while RIIZE will expand interactions with global fans through their first world tour, and EXO and SHINee's Minho, along with TVXQ, plan to engage with fans through fan meetings both domestically and internationally. Co-CEO Chang Cheol-hyuk stated, 'In this quarter, SM's representative artists maintained solid strength, and the rookie artists added new vitality with their rapid growth,' adding, 'This flow, which encompasses generations, is strengthening the IP portfolio, representing the virtuous cycle structure of the sustainable IP ecosystem we aim for.' He further stated, 'Based on the SM 3.0 strategy, we will enhance artist IP-centered businesses, focus on next-generation IP incubation and core businesses, and continue to complete a sustainable growth model in the global market.' SM is strengthening profitability and financial stability through a portfolio reorganization centered on core businesses and efficient resource management. By promoting a strategy of selection and concentration, including the merger with SM STUDIOS and the sale of non-core assets, they are achieving both efficiency in content production and an increase in shareholder value.
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