SM Entertainment’s Q3 revenues fall 9.5% YoY to $205M as album and concert revenue tumbles

SM Entertainment’s third-quarter 2026 revenue fell 9.5% year on year to KRW 291.1 billion ($205.1 million), as album and concert income weakened. Operating profit also declined, and the company reported a small net loss, contrasting with rival HYBE’s record quarter fuelled by BTS’s tour.

At SM’s parent company, revenue from physical albums and digital music fell 51.3% to KRW 47.1 billion, while new-release album sales dropped about 70% to 1.67 million copies. Concert revenue decreased 34.2% to KRW 34.5 billion, as the company focused on overseas shows and smaller fan events; merchandising and licensing rose 23.5% to KRW 62.1 billion. Operating profit fell 26.4% to KRW 35.5 billion, while a KRW 1.1 billion net loss compared with net income of KRW 44.7 billion a year earlier, largely due to foreign exchange losses.