SM Entertainment, under the leadership of CEO Jang Cheol Hyuk, recently reported phenomenal growth in the third quarter of this year, largely due to increased sales of albums and music from their stellar lineup of artists. The quarterly financial data indicates that SM made a remarkable jump in operation profit and sales—achieving the company's highest quarterly performance to date.

According to the report released by SM on November 8 KST, the company's operating profit soared to KRW 50.5 billion, with sales accumulating to KRW 266.3 billion. Comparing these figures to the same period in the previous year, revenues show an impressive increase of 70% in operating profit and a 12% increase in sales. It is also worth proportionately noting that the net profit reached KRW 84.2 billion, spiking 189%, compared to the same period the year before. The operating profit margin also increased by 6.5 percentage points year-on-year, coming in at 19%.

Looking into the individual performance lines, the operating profit for the third quarter came in at KRW 48 billion and sales at KRW 188.7 billion. This marks an increase in earnings of 77% and 40% compared to the previous year. The net profit for the same period was KRW 37.1 billion, up 68% from the corresponding period the year before.

Boosted by the vibrant activities of artists including NCT DREAM, aespa, and RIIZE, along with the resumption of offline concerts, there has been a significant increase in album sales. The latest album releases during the quarter saw sales hitting 8.71 million units, eclipsing last year's same-period total of 4.15 million units. This influx of purchases catapulted the record sales to the highest ever in a quarter.

SM is likely to mirror its strong financial performance in the coming quarters, backed by its line-up of major album releases and music rollouts. A series of releases are scheduled for November and December including Red Velvet's 3rd full-length album, Taeyeon's 5th mini album, NCT 127's single, TVXQ's 9th full-length album, and more.

Also, in the first quarter of next year, SM has ambitious plans for global expansion for aespa, including releasing a full-length English album. In tandem, SM is all set to release new albums by NCT DREAM and NCT NEW TEAM.

SM’s CEO Jang Cheol Hyuk is very optimistic about the direction the company is heading toward. He anticipates a continued growth trajectory powered by the upcoming albums and concerts from Aespa, Red Velvet, Taeyeon, and TVXQ, as they celebrate their 20th anniversary. He stated, “We will actively promote the recruitment of global artists, ensure a stable supply of quality songs, and ensure that music sales to external labels and agencies will become a new revenue source for SM in the future.”