SM Entertainment surpassed 1 trillion won in consolidated annual revenue for the first time in company history.
SM disclosed on the 11th that consolidated revenue for last year reached 1.1749 trillion won, an 18.7% increase from the previous year.
Operating profit was provisionally tallied at 183 billion won, a 109.7% increase year-over-year. Net profit surged 43,326.3% to 355.7 billion won.
Fourth-quarter operating profit rose 62.2% year-over-year to 54.6 billion won. Revenue and net profit for the quarter were 319 billion won and 27.4 billion won, respectively.
"This performance reflects the expanded global tours of core intellectual properties including NCT Dream, aespa, RIIZE, and NCT WISH, as well as the full contribution of merchandise and licensing businesses utilizing artist IP," SM said. The company added that "improved performance at major subsidiaries including SM C&C and SM Japan, along with the consolidation of Dear U, also positively impacted consolidated results."
SM also introduced its "SM NEXT 3.0" strategy focused on sustainable growth structure. Co-CEO Tak Young-jun said, "This strategy focuses on building a sustainable growth structure rather than short-term expansion or speed competition." He added, "Through a multi-creative system that enhances the autonomy and efficiency of production organizations, we are creating more predictable and replicable results across IP planning and production."
Tak continued, "We will pursue new IP development and global expansion strategies in a balanced manner while simultaneously strengthening revenue growth, profitability, and long-term IP competitiveness."
SM plans to sustain growth in album, music, and concert revenue this year with scheduled releases in the second quarter, including full-length albums from aespa, Taeyong, and NCT WISH, as well as mini-albums from RIIZE and Hearts2Hearts.