April 18, 2024

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[THE INVESTOR] SM Entertainment has satisfied second-quarter earnings expectations and its outlook for the second half is rosy, said Mirae Asset Daewoo on Aug. 16, maintaining a “buy” recommendation and raising the target price to 54,000 won (US$47.83) from 47,000 won. 

Its revenue in the period surged 83.8 percent on-year to 124.4 billion won and operating profit by 626.2 percent to 10 billion won. The agency’s artists have been active both at home and abroad, and over 82 percent growth of revenue from international sales was the most positive. In the latter half, in addition to strong earnings, it will have stronger growth momentum. EXO and Red Velvet will roll out full albums and have tours in Japan while NCT’s Chinese team will debut, said analyst Park Jeong-yeop.

Global video and music platforms are growing and so did K-Pop’s popularity across the world. The video and music service not only have high gross profit margins but also could lead to concerts in wider markets. Its main business has shown sharp advance for the first time in two years as it fully charges its lineup, underlined the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)