On November 5th, SM Entertainment (SM) released its third-quarter financial results, reporting consolidated revenue of 242.2 billion KRW and an operating profit of 13.3 billion KRW. Compared to the same period last year, revenue fell by 9.0%, and operating profit declined by 73.6%. 

The decrease in revenue was attributed to lower album sales and a decline in sales from major affiliates, while operating profit was affected by reduced affiliate revenue and the production costs for SM’s first UK boy group, DEAR ALICE.

On a separate basis, SM’s third-quarter revenue reached 172.1 billion KRW, with an operating profit of 27.1 billion KRW, down 8.8% and 43.6%, respectively, from the previous year. Although album and music sales decreased due to last year’s strong album sales base, concert revenue rose due to expanded concerts and in-house production, which also boosted MD (merchandise) sales linked to concerts. Net profit for the quarter was 16 billion KRW, a 56.8% decrease year-over-year.

Looking forward to the fourth quarter and early next year, SM has planned a series of activities for its artist lineup. Notably, a new girl group—the first since aespa five years ago—is set to debut in the first quarter of next year. 

This aligns with the SM 3.0 IP expansion roadmap, introducing new IPs such as RIIZE, NCT WISH, and global projects like the UK boy group DEAR ALICE and SM's first virtual artist, naevis. The new girl group will launch with a single and begin active promotions in the first quarter of next year.

Aespa has also been thriving, with the release of their member solo singles from their recent concerts and their mini album Whiplash on October 21st, which has been warmly received. This year, they have maintained their #1 streak with relay hits starting with Supernova. 

In November, SHINee’s Minho released his first full album on the 4th, and NCT DREAM is set to release their fourth full album. Additional releases include TVXQ’s Japanese album and a 20th-anniversary concert tour, NCT WISH’s Japanese album, and a Japanese mini-album by NCT's Yuta. Other anticipated releases are Red Velvet’s Irene’s solo debut album, mini albums from Taeyeon and WayV, and a single by naevis.

As SM approaches its 30th anniversary in the first quarter of next year, it is preparing a variety of commemorative projects, including the SMTOWN LIVE concert and SMTOWN album.