SM Entertainment's 99% Decline In Net Profit Shocks Netizens
SM Entertainment’s latest financial report has stunned netizens as the company revealed a drastic drop in its net profit.
SM Entertainment’s latest financial report has stunned netizens as the company revealed a drastic drop in its net profit. According to Herald Corp, SM’s operating profit for last year stood at approximately ₩87.5 billion KRW (about $60.1 million USD), reflecting a 22.8% decrease from the previous year. Meanwhile, the company’s total revenue saw a modest 3% increase, reaching ₩990 billion KRW (about $680 million USD).
| SM Entertainment
However, what truly caught the public’s attention was the company’s net profit, which plummeted by 99.4%, leaving SM with only ₩465 million KRW (about $319,000 USD) in net earnings. Given that SM is one of the biggest entertainment companies in South Korea, this sharp decline has sparked widespread discussion.
| SM Entertainment
Many are questioning how a company with multiple active artists, successful comebacks, and strong album sales could experience such a dramatic drop in net profit. Some speculate that major expenses — such as investments in new groups like RIIZE and other subsidiaries — may have contributed to the numbers. Others are comparing SM’s financial struggles to those of HYBE, which has also been criticized for its earnings report.
| TheQoo“Are you sure this is SM Entertainment? It just says SM.”
“How does an entertainment company even survive with only 400 million KRW in net profit…?”
“This is even worse than HYBE, lol.”
“Their artists were actively promoting and selling well… so where did all the money go?”
“Didn’t RIIZE debut last year? Maybe they spent a lot on their debut.”
Source: Herald Corp and TheQoo
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