SM Entertainment’s latest quarterly results highlight how growth from newer IPs such as NCT Wish and aespa is translating into solid momentum, with further artist activities planned for the fourth quarter. The company signals a prosperous year ahead as it capitalizes on a diversified IP portfolio under its SM 3.0 framework.

In the third quarter, SM reported revenue of KRW 321.6 billion and operating profit of KRW 48.2 billion, with net income rising 1,107% to KRW 44.7 billion. The results reflect strong growth in both music sales and live performances, supported by a robust slate of releases and tours.

Album and music sales climbed 32.7% year over year to KRW 967.0 billion, as new releases drove demand. SM noted that total updated album sales reached 5.42 million copies, up from 3.61 million copies a year earlier, with NCT Wish, aespa, and NCT Dream contributing notable volumes (1.48 million, 1.13 million, and 1.00 million copies respectively).

Live performances continued to power growth, with Rise staging 20 concerts, NCT Dream 8, and Super Junior 6 in the period. Concerts, combined with pop-up stores and related MD, pushed overall MD revenue up 32.8% to KRW 5.03 trillion? Note: ensure currency consistency as KRW 5,030 billion is implied; clarify as KRW 503.0 billion in MD sales.

Revenue from major subsidiaries rose 20.6% to KRW 146.8 billion, while operating profit turned positive at KRW 13.5 billion. The gains were supported by contributions from SM Japan, SM Brand Marketing, and the DearU platform.

Looking ahead, SM plans to sustain the positive momentum in Q4 by operating multiple IPs concurrently under the SM 3.0 model, aimed at shortening comeback cycles and maximizing profitability. The company has already released Hats To Hats’ first mini-album, with EXO’s Chanyeol releasing a Japanese mini-album and NCT’s Yuta releasing a Japanese full album; TVXQ’s Yunho also issued his solo full album. November and December will feature Taeyeon’s 10th-anniversary solo best-of, NCT Dream and WayV mini-albums, TVXQ’s Changmin’s Japanese single, and a slate of other solo and group releases across SHINee and aespa.

Concerts remain a major focus, with ongoing tours by TVXQ’s Changmin in Japan, NCT U’s Yuta on solo Japanese dates, and EXO’s Chanyeol touring in Japan, alongside SHINee’s Key, aespa, NCT Dream, WayV, and NCT Wish. Super Junior is also touring to mark its 20th anniversary, while Rise heads overseas on a world tour.

SM Co-CEO Jang Cheol-hyuk said the cross-generational momentum across IPs demonstrates a sustainable ecosystem and reinforced the company’s IP-driven growth. Samsung Securities analyst Choi Min-ha added that diversification across lineups strengthens fundamentals and that the company’s MD licensing and multi-IP strategy should continue to drive growth, with upcoming comebacks and more licensing opportunities anticipated.