[NEWS] SM Net Profit Falls by 90%; Operating Profit Falls by 80%; Stock Falls by 10% in One Day

[NEWS] SM Net Profit Falls by 90%; Operating Profit Falls by 80%; Stock Falls by 10% in One Day

We wrote about the results of the Quarterly Reports that SM recently released here.

Now, there are some news articles. Here is a collection of articles published on the vast gap between the first quarter of last year and the first quarter of this year that SM suffered:

SM, First Quarter Operating Profits 2,400,000,000 KRW (approximately 2,400,000 USD)… Compared to Last Year, Down 76%

SM Entertainment made an official announcement on the 16th that the First Quarter’soperating profits is 2,400,000,0004 KRW (approximately 2,400,000 USD) decreased by 76% compared to the First Quarter of last year.

Sales were 19,300,000,000 KRW (approximately 19,300,000 USD) and so decreased by 14% compared to the same quarter of last year, and the net profits were 1,000,000,000 KRW (approximately 1,000,000 USD) and so decreased by 87%.

Entertainment Leading Stock SM, Falls by 10% in One Day

Effects of the Operating Profits of First Quarter being down by 76%

“Entertainment Leading Stock” SM Entertainment had a plunge due to the aftermaths of the first quarter’s poor results.

On the KOSDAQ market on the 17th, SM finished at 18,850 KRW (approx. 18.85 USD), 2,300 KRW less than prior day (10.87%). The volume of trading was over 3 times of the prior date at 1,420,000 shares, and the “sell” quantities were poured into the market. Upon the announcement of the quarterly results, it was revealed that they had hugely soured, the operating profits of the first quarter stopping at 2,400,000,0004 KRW (approximately 2,400,000 USD) which was a sudden decrease of 76% from last year and the sales being at 19,400,000,000 KRW (approximately 19,400,000 USD) which was a 15% decrease.

In particular, the royalty sales had a sharp drop from 14,600,000,000 KRW to 5,6000,000,000 KRW (approximately 14,600,000 USD and 5,600,000 USD respectively)…(rest omitted)

SM, The Empty Spot Left by TVXQ is Huge… Results Drop

The public entertainment management enterprise SM’s stock prices are showing a sudden fall of 6-8%.

There is an interpretation that the reason that the operating results compared to that of last year has sharply fallen is because the activities of “TVXQ” which acted as the cash cow has sharply fallen, and so is gathering attention.

(…)

This analyst said in particular: “SM’s operating profits from the first quarter of last year was about 10,000,000,000 KRW (approximately 10,000,000 USD). Within it, about 8,000,000,000 KRW (approximately 8,000,000 USD) was operating profits earned through the former TVXQ. As much as this, sales from Japan contributes hugely to operating profit….”

(rest omitted) 

 SourceMoney TodayKorea EconomyKorea Economy Dot Com
Translation CreditJYJ3

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