SM Reports Q3 Operating Profit of 35.5 Billion Won

SM Entertainment disclosed its financial results for the third quarter of 2026, showing consolidated sales of 291.1 billion won and an operating profit of 35.5 billion won.

Sales decreased by 9.5% compared to the same period last year, while the operating profit dropped by 26.4%. The net profit turned negative due to foreign exchange losses resulting from the strengthening of the Korean won.

On a standalone basis for the third quarter, sales amounted to 173.4 billion won, a 22.8% decline from the prior year’s figure, with operating profits at 28.4 billion won and net profits at 11.1 billion won.

The spread in release schedules for new domestic albums, as the company focused on large-scale tours to expand its global fanbase and smaller-scale performances to engage fans directly, impacted these financial results.

Although sales from albums, music streams, and concerts experienced fluctuations, revenue from MD (planned merchandise) and licensing activities utilizing artist IPs increased to 62.1 billion won, a 23.5% rise from the same period last year.

Revenue from advertising and event appearances rose to 29.2 billion won, a 21.3% increase from the previous year.

SM aims to restore its financial performance by launching a dense schedule of album releases and concerts in the fourth quarter and the first quarter of next year.

aespa will undertake a European tour covering nine cities, including London and Paris, following their tours in the Americas.

RIIZE will launch their first full-length album and commence active promotions.

NCT WISH held a sold-out solo concert at the Gochek Sky Dome.

NCT 127 is progressing sequentially with their fifth world tour.

SM stated, “We will balance the expansion of activities for existing legacy artists, the growth of younger IP assets, and entry into new markets to build a well-rounded portfolio.”