SM Entertainment (041510) Q2 2026 earnings summary

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.