SNSD is SM's Ace

On August 16th, it was revealed that SM Entertainment earned 47.5 billion won (~$40.4 million USD) in sales and 18.6 billion won (~$15.8 million USD) in operating/business profits. This earning was a lot more than expected. Just the first quarter of this year, SM hit a record of 22.7 billion won (~$19.3 million USD) in sales and 10.4 billion won (~$8.8 million USD) in operating/business profits.

This means that compared to the first half of last year, SM Entertainment rose 59% in sales profits and 385% in business profits this year. SM’s future results look promising as well. Besides having taking place as the leading girl group, SNSD is also about to enter into Japan as well.

Last year, SNSD had a mega-hit with their song “Gee” and rose as the national girl group. It’s estimated that just last year, they added more than 5 billion won (~$4.25 million USD) to SM’s profits with their single and album sales. They are to enter into Japan next month and it is expected that they will continue to be like good daughters of SM, giving back and boosting SM’s performance.

Super Junior, Shinee, and f(x) are also moving fandoms in all of Asia on a large scale. On top of that, “veterans” Kangta and BoA are adding strength by showing that they are alive and doing well as well.

According to a market expert said, “In the case of entertainment companies, liquidity in the market is so large that it is difficult for profits to be guaranteed. SM had such surprising results because they lowered their risks as much as possible and set out only contents they were sure to be successful with.”


(Note: All USD values were converted according to current conversion rate and roughly rounded)



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Source: Sports Hankook
Translation: taengbear@soshified.com