SM announces dismal Q3 earnings and new girl group for 2025

SM Entertainment reported third quarter earnings that fell under market consensus on Tuesday as it also announced that it would debut a new girl group next year to follow aespa.

Girl group aespa [NEWS1]

SM Entertainment reported third quarter earnings that fell under market consensus on Tuesday as it also announced that it would debut a new girl group next year to follow aespa.

The agency's revenue for the third quarter fell 9 percent to 242.2 billion won ($175.89 million) compared to the same period last year primarily due to a decline in album sales. Operating profits dropped by 73.6 percent to 133 billion won, attributed to a decrease in its subsidiary companies’ sales and increased production costs for the entertainment company's first British group, Dear Alice, the company said in a press release.

The company saw increased concert revenue and merchandise sales through expanded concert operations and the internalization of concert businesses. Net income decreased by 56.8 percent to 160 billion won.

The company aims to kick off 2025 with a new girl group.

"SM will expand its artist IP spanning all generations of K-pop by nurturing both longstanding artists and continuously debuting new artists," SM Entertainment’s co-CEO Jang Cheol-hyuk said in its press release on Tuesday.

"We are planning to hold more concerts and roll out more merchandise and albums next year," Jang added.

The agency will debut a new girl group in the first quarter of next year, marking five years since aespa's debut. The new girl group's intellectual property (IP) content will be an extension of the company's 3.0 IP road map, which includes IP related to Riize, NCT WISH, Dear Alice and the company's first virtual artist, nævis.

Boy band Riize [YONHAP]

SM Entertainment said its artists will remain active in the fourth quarter and the following year with new album releases and concerts.

Girl group aespa is continuing its music activities with its EP "Whiplash" following its first full-length album "Armageddon." SHINee member Minho released his first solo full-length album on Nov. 4, and NCT Dream will release its fourth full-length album, "Dreamscape,” on Nov. 11. Red Velvet member Irene's first solo album and EPs by Girls' Generation member Taeyeon and NCT unit WayV are also scheduled for release this month.

Boy band NCT 127 [YONHAP]

In celebration of its 30th anniversary next year, SM will be hosting an SM Town Live concert featuring various SM artists, along with an SM Town album and other commemorative projects. NCT member Mark's first full-length album, EXO member Kai's EP and EPs from Red Velvet's Seulgi, NCT Wish and WayV's Ten are also in the pipeline.

NCT 127's fourth world tour, "Neo City – The Momentum," is set to kick off on Jan. 18 at Gocheok Sky Dome in western Seoul. The group will then embark on a global tour, visiting major cities including Jakarta, Bangkok and Los Angeles.

BY YOON SEUNG-JIN [yoon.seungjin@joongang.co.kr]