SM Entertainment (041510) Q4 2024 earnings summary

Executive summary

• Revenue grew 9.0% year-over-year to KRW 273.8bn, driven by concerts, MD/licensing, drama production, and artist activities in Japan.

• Operating profit surged 275.6% year-over-year to KRW 33.9bn, reflecting improved sales mix and performance-based compensation.

• Net loss narrowed significantly year-over-year, with consolidated net income at -KRW 24.1bn versus -KRW 52.8bn in 4Q23.

Financial highlights

• Gross profit increased 8.5% year-over-year to KRW 86.2bn; SG&A expenses fell 25.7% year-over-year.

• Parent company revenue rose 11.0% year-over-year to KRW 181.8bn; operating profit up 83.2% to KRW 35.8bn.

• Major subsidiaries' revenue up 4.1% year-over-year to KRW 135.4bn; operating loss reduced.

Outlook and guidance

• Expanded concert and MD sales, as well as new drama productions, are expected to support future growth.

• Upcoming music and concert lineups feature major artists and international tours, indicating continued focus on global expansion.