SM Entertainment’s second-quarter revenue rose 15.4% year on year to KRW 349.6 billion ($233 million), driven chiefly by concerts, merchandise and licensing, as well as growth across subsidiaries. The results underline the increasing importance of live events and fan-focused intellectual-property sales to the K-pop company, despite weaker album and digital music revenue.

Operating profit increased 11.0% to KRW 52.9 billion ($35.3 million), but net income fell 5.6% to KRW 29.2 billion ($19.5 million) because of investment valuation and impairment losses and higher tax costs. Concert revenue grew 23.6%, merchandise and licensing rose 22.0%, while album and digital revenue declined 8.2% as new-release sales fell from 6.03 million to 5.67 million copies; subsidiary revenue increased 25.5%.