SM Entertainment Reports Revenue Decline On Lower Music Sales, Concert Revenue
Categoria: Musica
The K-pop label said it had fewer major releases in the quarter "as our major artists focused on expanding their overseas activities."
Por Billboard | 04/11/2026
SM Entertainment’s stock sank more than 7% on Wednesday (Nov. 4) after the label home of K-pop stars aespa and NCT reported an unprofitable quarter. The company said lower physical and digital music sales and concert revenue resulted in a 9% decline in overall revenue. SME said it generated 291.1 billion Korean won ($205.2 million) in revenue and operating profit of 35.5 billion Korean won ($25 million), which is down 26% from the year-ago quarter. The company operated at a net loss of 1.1 billion Korean won ($775,000) for the quarter, down from a 44.7 billion Korean won ($31.5 million) profit a year ago, “primarily due to foreign exchange-related losses resulting from the appreciation of the Korean won,” Jeongmin Jang , CIO of SM Entertainment, said on a conference call discussing the quarter. Related ‘NCT 127 Is Back’: K-Pop’s Mavericks Talk Contract Renewals & Being Uncompromising in Their ‘Neo’ Sound Kenny MacPherson, Veteran Music Publisher and Big Deal Music Co-Founder, Dies at 71 Diddy Moved From New Jersey Prison to Similar Facility in Pennsylvania “New album sales volume decreased by approximately 70% year over year as our major artists focused on expanding their overseas activities,” Jang said. Sales of physical and digital music fell by 51% to 47.1 billion KRW ($33.21 million). SM said it sold 1.67 million copies of artists’ releases in the quarter, driven primarily by sales of NCT 127 ’s album BLINGY . There were bright spots in SM’s earnings. The company’s share of major artists’ album releases and global concert activities, as well as the impact of IP licensing collaborations — what the company refers to as MD/licensing revenue — increased 23.5% year over year to 62.1 billion Korean won ($43.78 million). Additionally, revenue earned from artists’ appearances, driven by artists’ participation in international award ceremonies, music festivals, apparel and cosmetics advertising, and other areas increased by 21.3% to 29.2 billion Korean won ($20.6 million).