SM Entertainment announced its third-quarter 2024 financial results. 

Although the company's overall performance decreased year-over-year due to a slowdown in the growth of the K-pop market, it recorded of 10 times the net profit of HYBE (1.4 billion KRW/ ~1 million USD) for the same quarter.

On November 5, SM reported a consolidated revenue of 242.2 billion KRW (~175.6 million USD), an operating profit of 13.3 billion KRW (~9.6 million USD), and a net profit of 16 billion KRW (~11.6 million USD) for Q3 2024.

Compared to the same period last year, revenue decreased by 9.0%, operating profit by 73.6%, and net profit by 56.8%. The decline in revenue was influenced by a decrease in album sales and lower revenue from major subsidiaries. Operating profit fell due to lower subsidiary revenue and production costs for SM’s first UK-based boy group DEAR ALICE’s broadcast program.

On a separate basis, SM recorded Q3 revenue of 172.1 billion KRW (~124.8 million USD) and an operating profit of 27.1 billion KRW (~19.6 million USD), representing decreases of 8.8% and 43.6% year-over-year, respectively. Although album and digital sales declined compared to the same period last year due to a strong album release base from the previous year, concert and related revenue increased due to expanded concert offerings and internalized concert operations.

SM anticipates active schedules for its artists in Q4 2024 and Q1 2025. In particular, a new female rookie group, the first since aespa’s debut five years ago, is set to launch in Q1 next year. They plan to kick off promotions with a single release.

A netizen shared an article headline on an online community by media outlet IZE, who decided to report SM's Q3 2024 profit with the headline "SM announces Q3 Performance... The net profit is 10 times higher than HYBE." 

Many were skeptical that HYBE had such a low net profit. They commented: 

"They need a thorough tax audit, starting with examining corporate card usage."

"I can't believe this is an actual headline with actual facts, lol."

"Seriously, they need a tax audit—does this even make sense?"

"But really, this isn't something to laugh about; shouldn’t they be audited?
SM: Revenue 242.2 billion KRW / Net profit 16 billion KRW
HYBE: Revenue 527.9 billion KRW / Net profit 1.4 billion KRW
It’s shady, really shady."

"Is HYBE just siphoning off money for themselves?"

"Some creative accounting?"

"At that level, it just looks like they're hiding money somewhere. Can 1.4 billion KRW in profit even make sense, no matter how much they spend? It doesn't add up."

"In so many ways, they're getting called out, huh?"

"HYBE, what's going on?"

"Wow..."

"This really doesn't make sense... 10 times HYBE?"

"HYBE needs a tax audit."

"What is HYBE doing?"

SEE ALSO: Is this the name of JYP Entertainment's new boy group?