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SM Entertainment (041510) investor relations material
SM Entertainment Q2 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Revenue for H1 2026 was KRW 628.7 billion, up 15.4% year-over-year to KRW 349.6bn in Q2, driven by concert and MD/licensing growth and improved subsidiary performance.
Operating profit rose 11.0% year-over-year to KRW 52.9bn in Q2, with H1 2026 operating income at KRW 91.5 billion.
Net income declined 5.6% year-over-year to KRW 29.2bn in Q2, but H1 2026 net income was KRW 65.9 billion.
Entertainment accounted for 93.8% of consolidated sales, with strong contributions from music, management, and performance/contents.
Major shareholder is Kakao, holding 21.61% of shares as of June 2026.
Financial highlights
Gross profit increased 1.1% year-over-year to KRW 115.8bn in Q2.
SG&A expenses decreased 6.0% year-over-year to KRW 62.9bn in Q2.
Operating profit margin was 15.1% in Q2, and 14.6% for H1 2026.
Total assets at June 2026: KRW 2,009.1 billion; equity: KRW 1,385.7 billion.
Cash and cash equivalents at period end: KRW 371.1 billion.
Outlook and guidance
Upcoming music releases and concert tours scheduled for 3Q26 and 4Q26, featuring major artists and group anniversaries.
The company continues to focus on global expansion, IP business acceleration, and digital platform growth.
- Revenue up 20.6% YoY, but net profit down 85.5% due to prior-year one-offs and tax.041510
Q1 2026 - Sales rose 5.9% year-over-year, but net profit plunged 70.3% as entertainment drove 91% of revenue.041510
Q2 2024 - Net profit plunged 95.6% year-over-year as revenue and album sales weakened.041510
Q3 2024 - Operating profit surged 275.6% year-over-year on strong concert and MD/licensing growth.041510
Q4 2024 - Net profit soared 1,852.4% year-over-year, driven by one-off gains and concert growth.041510
Q1 2025 - H1 2025 net income surged to KRW 283.6B on strong entertainment sales and global growth.041510
Q2 2025 - Nine-month revenue hit KRW 855.9B, net income KRW 328.3B, with robust music and global growth.041510
Q3 2025 - Revenue and profit surged year-over-year, driven by concerts, MD/licensing, and digital music.041510
Q4 2025
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