According to SM Entertainment's quarterly report published on November 14, the entertainment agency recorded a total sales amount of 238.1 billion KRW (~ $180 million USD) in the third quarter of 2022, a 65% increase from the same quarter last year.
Additionally, the company reported a total operating profit of 29.8 billion KRW (~ $22.5 million USD) for the third quarter of 2022, a major increase of 201% from the same quarter in 2021.
In the third quarter of 2022, SM Entertainment paid a total of 6.6 billion KRW (~ $5 million USD) in service fees to producer Lee Soo Man's LIKE Holdings, bringing the total amount of service fees paid to producer Lee in 2022 to 18 billion KRW (~ $13.6 million USD). If SM Entertainment's contract with LIKE Holdings comes to an end by the end of 2022 as previously hinted, it's likely that the entertainment agency will witness as much as a 25% increase in operating profits.
Finally, in the fourth quarter of 2022, SM Entertainment artists including Red Velvet and BoA are set to release albums. Sales from Red Velvet Seulgi and EXO Chen's releases will also contribute to fourth quarter sales, on top of live concert profits from SMTOWN, NCT Dream, SHINee's Onew, etc.
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The have 180 million $ sales but only 20+ million $ profit? The same with jyp while jyp only have 70m $ sales.
so it's really true that even if you sell so many physical albums, it's really not that profitable huh.
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