SM Entertainment Scores Big with K-Pop Power and Next-Gen Moves!
Brace yourselves, K-pop stans! SM Entertainment is riding high on an epic wave of success as they light up the charts and rake in mega bucks. Known for their superstar acts like NCT 127, EXO, aespa, and the fresh new group Riize, this K-pop powerhouse is turning heads with a massive boost in revenue and profits for Q3 2025.
Get this—their operating profit skyrocketed by a staggering 261.6% year-over-year, hitting a sweet 48.2 billion won (that’s a cool USD $34.8 million). Their overall revenue? A jaw-dropping KRW 321.6 billion ($232 million), up by 32.8% from last year!
What’s the secret sauce? Hit albums like NCT WISH's 'Color', aespa’s 'Rich Man', and NCT DREAM's 'Go Back to the Future' are topping a million sales each and driving music sales up by 32.7%! Plus, with a sold-out concert scene even with fewer events, concert earnings jumped 37.5%, raking in KRW 52.5 billion ($37.9 million).
But there’s more—thanks to hot merch and pop-up stores from aespa, NCT WISH, and Super Junior, merchandising revenue soared by 32.8%. And their star-studded TV appearances are keeping advertising dollars rolling in, with those earnings up by 6.7%.
SM Entertainment’s CEO Cheol-hyuk Jang is pumped about the fresh energy that’s bringing a new era to the company. He’s lauding the rise of new IPs alongside their legendary acts, which are driving a “virtuous cycle” in SM’s growth.
Another ace up their sleeve? The growing fan platform DearU, which connects fans directly with their idols through the Bubble messaging service. SM snapped up a 45.1% controlling stake, making it a money-making hotspot with KRW 22.3 billion in revenue this quarter alone!
Their subsidiaries are on the rise too, swinging from losses last year to a solid KRW 13.5 billion operating profit this time around! SM C&C, SM Japan, and SM Brand Marketing are all seeing revenue bumps thanks to smart strategies and cool concert vibes.
But wait, there’s even more brewing! Get ready for SM Entertainment’s newest innovation, the SMTR25 project. This initiative is all about discovering the next generation of K-pop stars and includes an exciting reality show, 'Reply High School', featuring 15 fresh trainees ready to take the stage.
SM Entertainment isn’t just thriving—they’re redefining the future of K-pop. Keep your eyes peeled for what comes next, because this is one ride you don’t want to miss!