SM Entertainment's Big Second Quarter: What's Driving the Growth?

SM Entertainment had a strong second quarter, with revenue up 19. 3% to 302. 9 billion KRW. This growth was mainly due to a big increase in album sales. RIIZE's "Odyssey" sold 1. 93 million copies, while NCT WISH's mini-album sold 1. 34 million copies. Even aespa's single "Dirty Work" sold 900, 000 units. In total, SM Entertainment sold 5. 79 million units in the quarter. However, concert revenue was down 1. 9% year over year. This is despite many concerts happening, like SMTOWN's 30th anniversary shows and performances by TVXQ! , NCT 127, Ten, NCT WISH, and SHINee. It seems that album sales are making up for the drop in concert revenue. Merchandise and licensing revenue went up by 39. 6%. This was due to concert merchandise, an NCT WISH exhibition, and a RIIZE character event. It shows that fans are spending more on merchandise and unique experiences. Operating profit was up 47. 3%, and net income nearly tripled. This is a good sign for the company. The CEO said they are focused on long-term growth and building their IP portfolio. They want to make sure both old and new IPs are successful. Subsidiaries like SM Entertainment Japan and DREAM MAKER had big increases in revenue. But SM Culture & Concerts and KEYEAST saw decreases. This shows that some parts of the business are doing better than others. Looking ahead, SM Entertainment has a busy release schedule. They have albums and mini-albums planned for the rest of the year. They also have many tours coming up. This should help keep the growth going.