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Manila Bulletin devider Entertainment devider Hallyuwood devider Global tours by NCT Dream, Aespa, RIIZE, NCT Wish drive growth in SM Entertainment's Q4 performance

Global tours by NCT Dream, Aespa, RIIZE, NCT Wish drive growth in SM Entertainment's Q4 performance

Published Feb 12, 2026 02:00 pm
(Clockwise from top left) Aespa, NCT Dream, RIIZE and NCT Wish (X)
(Clockwise from top left) Aespa, NCT Dream, RIIZE and NCT Wish (X)

Korean agency SM Entertainment reported an increase in revenue for the fourth quarter of 2025, with performance driven by global tours by its K-pop artists. 

SM Entertainment presented its record fourth quarter of 2025 results on a consolidated basis, marking the strongest fourth-quarter performance in the company’s history.

For the fourth quarter ended Dec. 31, 2025, SM Entertainment recorded consolidated revenue of 319 billion won (about $221.8 million), up 16.6 percent year over year, and operating profit of 54.6 billion won (about $37.9 million), representing a 62.2 percent increase from the prior year period. 

Operating margin rose to 17.1 percent, an improvement of 4.8 percentage points year over year, reflecting enhanced operating leverage and profitability. 

Net income totaled 27.4 billion won (about $19 million), compared to a net loss in the prior-year quarter.

On a standalone (non-consolidated) basis, revenue increased 12.1 percent year over year to 202.2 billion won (about $140.52 million), while operating profit rose 10.2 percent to 39.5 billion won (about $27.45 million) billion. 

Standalone net income increased 106.5 percent YoY to 29.3 billion won (about $20.36 million), supported by improved core business performance.

Tak Young-jun (aka Dmitry YJ Tak), left, and Jang Cheol-hyuk (aka Daniel Jang), co-CEOs of SM Entertainment (Photo from SM Entertainment)
Tak Young-jun (aka Dmitry YJ Tak), left, and Jang Cheol-hyuk (aka Daniel Jang), co-CEOs of SM Entertainment (Photo from SM Entertainment)

Concert and IP monetization drive growth

SM Entertainment said  its fourth-quarter performance was primarily driven by expanded global touring activities from core IPs including NCT Dream, Aespa, RIIZE, and NCT WISH, alongside continued growth in artists-driven merchandising and licensing businesses.

Improved performance at key subsidiaries, including SM C&C and SM Japan, as well as the consolidation of DearU, also contributed to consolidated earnings growth.

Executing “SM NEXT 3.0”

In connection with the earnings release, SM Entertainment highlighted continued progress under its long-term strategic framework, “SM NEXT 3.0,” which is designed to build a sustainable and scalable growth platform.

“SM NEXT 3.0 is focused on strengthening the foundation of our growth rather than pursuing short-term expansion,” said Jang Cheol-hyuk (aka Daniel Jang), co-CEO of SM Entertainment. “Through our Multi-Creative system, we are enhancing production autonomy and operational efficiency, enabling greater consistency and scalability across IP development. By advancing new IP incubation alongside disciplined global expansion, we aim to drive revenue growth, improve profitability, and enhance long-term shareholder value.”

Tak Young-jun (aka Dmitry YJ Tak), co-CEO of SM Entertainment, added, “Our global expansion strategy under SM NEXT 3.0 emphasizes sustainability, operational discipline, and strategic partnerships. By adopting a more focused, IP-specific regional approach aligned with market dynamics, we expect to enhance performance visibility while improving operational efficiency and execution across markets.”

Outlook

SM Entertainment said it expects continued growth in recorded music, digital distribution, and live performance revenue in the first half of 2026, supported by a robust artist lineup.

In the first quarter, full-length albums by EXO and Irene are scheduled for release, along with new projects from Hearts2Hearts and NCT JNJM. 

In the second quarter, full-length albums from Taeyong, Aespa, and NCT WISH are planned, alongside mini-albums from RIIZE and Hearts2Hearts and a single release from Ryeowook. 

The live concert segment is also expected to maintain strong global momentum. 

In the first quarter, Super Junior will continue their 20th anniversary tour, joined by NCT Dream, Aespa, RIIZE, NCT Wish, and Taeyong across Asia. 

In the second quarter, EXO will embark on their tour, TVXQ! will hold a concert at Nissan Stadium, and Hearts2Hearts will hold their first US showcases.

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