SM Entertainment Revenue Up 9% in Q4 Thanks to Tours by NCT Dream, EXO’s Chanyeol & More

K-pop company SM Entertainment used a healthy concert business to compensate for a slow new release schedule in posting revenue of 273.8 billion won ($189 million) in the fourth quarter of 2024, up 9% year over year, according to the company’s latest earnings report. Operating profit nearly tripled to 33.9 billion won ($23 million) and net loss was more than halved to 24.1 billion won ($17 million).

Recorded music revenue dropped 5.1% to 86.0 billion won ($59 million) due to a decrease in new album sales, which came in at 3.78 million units versus 5.51 million units in the prior-year period. NCT Dream sold 1.56 million units while Aespa had 1.1 million album sales in the quarter. Elsewhere, WayV sold 400,000 units and Irene sold 360,000 units.

Concert revenue grew 11.9% to 22.5 billion won ($15.5 million) thanks to an expanded tour schedule during the quarter. Exo’s Chanyeol performed 14 solo shows across Southeast Asia, Japan and China. NCT Wish performed 12 in Asia. NCT Dream, which began its world tour in the second quarter, played nine concerts in the fourth quarter. The higher number of concerts, as well as an increase in special events such as pop-up stores, helped merchandise and licensing revenue jump 33.7% to 51.2 billion won ($35.3 million).

In the first quarter, music releases include SMTOWN’s 30th anniversary album, SMTOWN, THE CULTURE, THE FUTURE, on Friday (Feb. 14). Red Velvet’s Seulgi and WayV’s Ten are also both due to release EPs, and a new girl group, Hearts2Hearts, will debut on Feb. 24 with the single “The Chase.”

This year, SM Entertainment is celebrating its 30th anniversary with a new slogan (“The Culture, The Future”), new films, new broadcast programs and SMTOWN LIVE 2025 World Tour concerts around the globe. “’THE CULTURE’ represents the legacy and cultural heritage that SM has built over the past three decades,” CEO Jang Cheol-hyuk said during the earnings call. “‘THE FUTURE’ embodies our ambition to drive innovation in the global music industry and lead the next era of K-pop. At SM, music is at the heart of everything we do. Through our music and cultural influence, we strive to remain a meaningful part of people’s daily lives. This slogan underscores our commitment to pioneering the future of K-pop while honoring the foundation we’ve built.”

In addition to announcing fourth-quarter results, SM Entertainment revealed that its board of directors approved the retirement of the remaining treasury shares, which are shares the company has repurchased from shareholders and holds on its books. The remaining treasury shares equal 2% of outstanding shares and are valued at 40.3 billion won ($27.8 million). Last February and August, the company retired more than 35 billion won ($24.1 million) worth of treasury shares.

SM Entertainment shares rose 2.9% to 95,000 won ($65.42) on Tuesday (Feb. 11) following the earnings release and announcement of the share retirement. Year-to-date, SM Entertainment stock has risen 25.7%.