SM Entertainment (A041510) Q2 2025 earnings summary

Executive summary

• Revenue grew 19.3% year-over-year to KRW 302.9bn, driven by higher sales from headquarters and major subsidiaries, and the consolidation of DEARU.

• Operating profit surged 92.4% year-over-year to KRW 47.6bn, reflecting revenue growth and subsidiary turnarounds.

• Net profit increased 267.2% year-over-year to KRW 30.9bn, with significant improvements across business lines.

Financial highlights

• Gross profit rose 47.3% year-over-year to KRW 114.5bn; operating margin improved to 15.7% from 9.7% a year ago.

• SG&A expenses increased 26.3% year-over-year to KRW 66.9bn.

• Sequentially, revenue increased 30.9% and operating profit rose 46.1% from the previous quarter.

Outlook and guidance

• Strong music and concert line-up previewed for the upcoming quarters, including major releases and tours by top artists.