SM Delays New Girl Group Debut To 2025, Sees Loss In Profit And Revenue For 3Q Of 2024
SM Entertainment saw both revenue and operating profit decrease in the third quarter of this year.
SM Entertainment announced on the 5th of November that its operating profit for Q3 2024, based on consolidated standards, was 13.3 billion won, a 73.6% drop compared to the same period last year. Revenue fell 9% year-over-year to 242.2 billion won, while net profit decreased by 56.8% to 16 billion won $11,604,420].
Revenue was impacted by a decline in album sales and lower revenue from major affiliates. New album sales dropped from 8.71 million in Q3 last year to 3.61 million this year.
However, concert revenue rose significantly with an expansion in performances, including 25 shows by aespa, 13 by NCT Dream, 23 by RIIZE, and 11 by Super Junior, pushing concert revenue up 55.9% from the same period last year to 38.2 billion won. Merchandise (MD) sales related to concerts also increased by 31.1%, reaching 37.9 billion won.
SM plans to improve its performance in Q4 this year and Q1 next year with active activities from its artists.
Notably, a new girl group—the first since aespa, launched five years ago—is set to debut in Q1 next year. SM has announced that the group is set to debut in 2025.
Additionally, in celebration of SM’s 30th anniversary in Q1, various commemorative projects are being prepared, such as an SMTOWN Live concert featuring SM artists and an SMTOWN album.
Are you excited about SM’s new girl group debut next year?
Source: (A)
