SM Entertainment saw improved performance in the fourth quarter of 2024 due to strong revenue growth. 

On February 10, SM Entertainment announced the preliminary financial results for Q4 2024, reporting consolidated revenue of 273.8 billion KRW (~188.6 million USD) and operating profit of 33.9 billion KRW (~23.4 million USD). Revenue increased by 9%, and operating profit rose by 275.6% compared to the same period last year. The net loss was reduced by more than half in Q4 2024 compared to Q4 2023, down from 58 billion KRW (~39.9 million USD) to 24.1 billion KRW (~16.6 million USD).

On a standalone basis, fourth‑quarter revenues reached 181.8 billion KRW (~125.3 million USD) and operating profit climbed to 35.8 billion KRW (~24.7 million USD), up 11% and 83.2% year‑on‑year, respectively. Net income turned positive at 8.3 billion KRW (~5.72 million USD).

The main drivers of SM's consolidated revenue growth in Q4 were increases in merchandise, licensing, and concert revenue. Merchandise refers to the goods sold at concerts, while licensing revenue comes from content copyright rentals. The increase in artist activities in Japan and expanded drama production also contributed to the growth of key subsidiaries. Consolidated operating profit surged significantly due to increased sales at both headquarters and affiliates, changes in sales composition, and recognition of performance bonuses.

Celebrating its 30th anniversary this year, SM Entertainment has unveiled its new slogan 'THE CULTURE, THE FUTURE' along with a brand film. This comes alongside the successful SMTOWN LIVE Seoul concert in January and the upcoming SMTOWN album, which will be released on February 14, SM's founding anniversary. SM also plans to connect with global fans through a K-pop orchestra concert, 'SM Classics Live 2025 with Seoul Metropolitan Symphony Orchestra,' on February 14 and 15, and a global SMTOWN LIVE tour in Q2.

SM Entertainment's new girl group, Hearts2Hearts, will debut on February 24 with their first single 'The Chase.' This would be SM Entertainment's launch of a new girl group in five years since aespa. In March, solo mini-albums from Red Velvet's Seulgi and NCT's TEN, as well as singles from Naevis, will be released.

In the second quarter of 2025, aespa’s new mini-album, RIIZE's full-length album, and solo albums from NCT's Doyoung and Mark are slated for release. Other planned releases include Kai's solo mini-album, Red Velvet's Irene and Seulgi, WayV, and NCT WISH’s mini-albums. Active artist activities across multiple genres are expected.

Additionally, aespa is continuing its world tour with sold-out shows in Seattle and LA, and NCT 127’s world tour is cruising smoothly with a Tokyo Dome performance scheduled. Other major global tours include TVXQ’s Japan national tour, Super Junior's Yesung, SHINee's Minho’s Asia tours, and more, while Taeyeon and NCT WISH are also set for their own Asia tours.

Furthermore, SM generated considerable buzz with the 'SM Entertainment Rookies' at the SMTOWN LIVE performance in January, showcasing 25 male trainees. The pre-debut promotions and upcoming participation in the global SMTOWN LIVE tour are expected to increase anticipation for new intellectual property (IP).

SM Co-CEO Jang Chul Hyuk commented, “SM will continue to stay true to its foundation and strive as a company based on the cultural heritage we have built. We will focus on maintaining a strong lineup of artists, expanding content, and innovating to further develop intellectual property for our artists.”

SEE ALSO: SM Entertainment reveals their artist debut and comeback lineup for Q2 2025