[THE INVESTOR] SM Entertainment’s third-quarter earnings were better than expected, said Mirae Asset Daewoo on Nov. 15 maintaining a “buy” recommendation and raising the target price to 70,000 won (US$61.89) from 65,000 won.
Its revenue surged 94.6 percent on-year to 168.7 billion won and operating profit by 162.9 percent to 12.1 billion won. Increasing profits from global music sources as well as commercials boosted the revenue. Income from music and videos through global platforms was 15.1 billion won in the third quarter, up from 10.3 billion won in the same period last year, said analyst Park Jeong-yeop.
Operating profit in the fourth quarter will soar 400 percent on-year to record 18.7 billion won, as all its artists are actively engaged. Album sales, including those of EXO and NCT127, will rise to 1.9 million while audience for Japan tours will reach 730,000. TVXQ! in particular will draw 1.28 million fans to its concerts by the year-end, the analyst noted.
By Hwang You-mee (firstname.lastname@example.org)