SM Entertainment (A041510) Q1 2025 earnings summary

Executive summary

• Revenue rose 5.2% year-over-year to KRW 231.4bn, driven by one-off music revenue and increased concert revenue.

• Operating profit surged 109.6% year-over-year to KRW 32.6bn, reflecting a favorable revenue mix.

• Net profit jumped 1,852.4% year-over-year to KRW 242.9bn, mainly due to the equity acquisition of DearU.

Financial highlights

• Gross profit increased 17.2% year-over-year to KRW 83.4bn.

• SG&A expenses decreased 8.6% year-over-year to KRW 50.8bn.

• Operating margin improved to 14.1% from 7.1% a year ago.

• Parent company revenue up 21.5% year-over-year to KRW 165.5bn; operating profit up 105.2% to KRW 41.3bn.

• Net income for the parent increased 94.1% year-over-year to KRW 32.2bn.

Segment performance

• Parent company saw strong concert revenue growth (up 58% year-over-year) and increased MD/licensing revenue.

• Major subsidiaries' revenue declined 16.8% year-over-year to KRW 104.5bn, with operating loss widening.

• DREAM MAKER subsidiary benefited from concert expansion, while KEYEAST and SMC faced declines.