SM Entertainment has announced impressive results for the first quarter of 2025, posting ₩231.4 billion in consolidated revenue, ₩32.6 billion in operating profit and ₩242.9 billion in net profit, according to its May 7 disclosure. Compared to the same period last year, revenue rose by 5.2%, operating profit jumped by 109.6% and net profit skyrocketed by 1,852.4%, largely due to the acquisition of Dear U shares.
On a separate basis, SM recorded ₩165.5 billion in revenue, ₩41.3 billion in operating profit and ₩32.2 billion in net profit, reflecting respective increases of 21.5%, 105.2% and 94.1% year-over-year.
While new album sales slightly declined, performance was boosted by increased digital music revenue, global concert expansion and strong MD/IP licensing performance.
A major highlight of Q1 was the debut of new girl group Hearts2Hearts, which surpassed 400,000 first-week album sales, quickly building a global fanbase. Meanwhile, SMTR25, comprised of 25 trainees, garnered significant attention with just their content—raising anticipation for their official debut.
The newly acquired platform Dear U will be included in consolidated earnings starting in Q2, expected to further strengthen performance. SM also cited plans for deeper expansion into the Chinese market through Tencent Music, along with broader IP partnerships and global branding efforts.
In the MD/IP division, revenue diversification was achieved through projects like RIIZE’s character pop-up store and the SHINee Key x Hello Kitty collaboration, showcasing expanded global brand collaborations.
Looking ahead, SM stated it will focus on aggressive global artist promotion and scaling its secondary IP business. In April, NCT WISH reached their first million-seller milestone with their second mini-album, while EXO’s Kai released his fourth mini-album, continuing his momentum as a world-class performer.
The upcoming months promise a packed release schedule:
May: RIIZE’s first full-length album, Red Velvet Irene & Seulgi’s mini-album, and SHINee’s single.
Later: NCT Doyoung’s second solo album, a new single from Hearts2Hearts, and aespa’s single.
Q3: Super Junior’s 20th-anniversary album, a new full-length album from NCT Dream, and aespa’s mini-album.
SM will also launch multiple tours, including Kai’s solo concert tour, RIIZE’s first concert tour, Irene & Seulgi’s concert tour, and NCT Dream’s fourth concert tour—reaching fans in key cities around the globe.
Co-CEO Jang Cheol-hyuk commented, “The rapid establishment of new IPs and our monetization strategy have fueled growth. We will continue to pursue qualitative development based on our SM 3.0 strategy, focusing on IP diversification and accelerating our global expansion.”