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Daily Interest [05.13.10] SM Entertainment record high revenue thanks to SNSD

Thursday, May 13, 2010Nicholas

 According to the 2010 1st Quarter report for SM out today, the company revenue for the quarter recorded an all time high of 22.7 billion won, with a record 10.4 billion won in operating profits, a huge increase of 471% from same period last year.

SM said "The main reason for this revenue and profit increase is due to explosive popularity of SNSD's 2nd album Oh! and increased overseas royalties resulting from energetic Asia activities by SM artists."

At the time of Gee's release SME stock price was about 1500 won, now it is about 7900 won so in terms of business achievement SM is doing awfully great, and SNSD's significant contribution to this is collectively acknowledged by the industry and shareholders(They made lots of money and some talk about sending gifts to the girls^^).

It's relevant to be aware of SM's business since it affects the activity plans of SM artists. Now that SM is doing so well people might think SM artists can get some rest now but in fact it works in the opposite direction. Public company like SME has huge pressure to continue to show growth so the company must find ways to maintain this huge profit. Rather than huge increases it's better to have stable growth and a balanced portfolio, which SME doesn't currently have.

Thus in conclusion this translates to continuation of overworked schedules for current SM artists. It's why SM is preparing for SNSD Japan and Asia promotion, and Korean comeback will occur as soon as possible (later this year or early next year at the latest). Almost all SM artists have comebacks this year the more successful they are the more stable SME becomes and a better situation for the artists. Let's support all our SM artists smile.gif I'm loving the new Suju and f(x) songs by the way~

 Above information credit to silis7noys2@soompi

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