SM Entertainment posted strong second-quarter results, exceeding market expectations with revenue of 302.9 billion KRW (~217.9 million USD, up 19.3% YoY, up 30.9% QoQ) and operating profit of 47.6 billion KRW (~34.2 million USD, up 92.3% YoY, up 46.1% QoQ). The performance was driven by robust merchandise (MD) sales from RIIZE and NCT WISH, alongside a turnaround to profitability in subsidiaries.
Album sales reached 5.79 million units, led by RIIZE (1.93M), NCT WISH (1.34M), and aespa (0.90M). Concert revenue fell 9.7% YoY to 33.6 billion KRW (~34.2 million USD) but remained above forecasts, with major tours from TVXQ, NCT 127, Taeyeon, SHINee, and others. MD sales surged 45.8% YoY to 63.9 billion KRW (~46 million USD), supported by successful pop-up stores.
Looking ahead, SM plans major comebacks in 3Q25 from NCT DREAM, aespa, NCT WISH, Super Junior, and WayV, followed by Taeyeon, Hearts2Hearts, and others in 4Q25. A total of 186 concerts are scheduled for the second half of the year.
SM also announced a strategic partnership with Tencent Music Entertainment to expand beyond music distribution into content planning, fandom data analysis, and concert execution, aiming to strengthen its presence and monetization in the Chinese market.
The company confirmed a three-year debut roadmap, including at least two to three new groups under SMTR25, with one debut planned for next year. Efforts to boost overseas MD sales and expand North American fandom remain key priorities, with aespa’s September comeback expected to spearhead growth.
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