Concert revenues surged due to the performances of artists like EXO and NCT DREAM.
SM plans to pursue aggressive strategies with album releases and tours in Q2.
[TV Daily Reporter Kim Ji-hyun] SM Entertainment has achieved unprecedented success in the first quarter of 2026. According to a public disclosure on the 6th, the company's consolidated revenue has reached 279.1 billion won, marking a growth of 20.6% compared to the same period last year. Operating profit has also seen a notable increase to 38.6 billion won, up by 18.5%, demonstrating financial soundness. The performance has primarily been driven by the extensive activities of global artists such as NCT DREAM, aespa, and RIIZE, with concert revenues surging by 56.0% year-on-year as these artists have ventured beyond Asia to global stages. Specifically, a large-scale pop-up event featuring EXO and concert merchandise promotions from aespa have attracted significant fan spending, generating sales of 47.4 billion won. The rookie girl group Hearts2Hearts, debuted last year, has made waves on the Spotify Global Chart by securing high rankings. While seasoned groups like EXO and Super Junior continue to showcase their strength, the young artists are also achieving remarkable international success. It is worth noting that net income has declined, influenced by last year's one-time gains; however, the current earnings have improved by over 18% compared to the previous quarter. Looking ahead to the second quarter, SM plans to continue its aggressive strategy, with several album releases from Taeyong, aespa, and NCT WISH, alongside mini-albums from SHINee and RIIZE. aespa's tours in North America and Europe, as well as EXO's world tour, are also set to commence, fueling expectations for increased concert and merchandise revenue. Co-CEO Jang Cheol-hyuk stated, 'We are establishing a sustainable IP growth structure' and emphasized ongoing aggressive investments and mergers and acquisitions (M&A) to expand global market share. This performance was detailed during a conference call held on the 6th.
The results achieved by SM Entertainment in the first quarter of 2026 exemplify the strength of the K-pop industry. Notably, the surge in concert revenues indicates that fan spending power remains robust. Artists like NCT DREAM, aespa, and RIIZE are not only expanding their fan base globally through tours but also enhancing the fan experience by linking their music to various merchandise. This strategy reinforces fandom loyalty and is likely contributing to SM's expanding market share.
This article is KOSTAR’s reinterpretation of a story originally reported by TVDaily.
Photo: TVDaily
