The sales and operating profits of both SM Entertainment and JYP Entertainment are expected to rise sharply in the second half of 2021.
On July 13, a Korean analyst shared their predictions and the factors that would most likely contribute to the increase in sales and operating profits of these two entertainment companies, which are included in the "Big 3."
SM Entertainment and JYP Entertainment Predicted to See a Surge in Sales and Operating Profits in the Second Half of 2021
Over the past six months, SM artists including NCT, EXO, and aespa made a domestic comeback, and all achieved success with their new releases. Notably, NCT Dream and EXO both sold millions of copies of their new albums.
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Because of this, Lee Ki-hoon, an analyst from Hana Financial Group, stated that SM Entertainment is projected to have sales of 178.4 billion won and an operating profit of 27.4 billion won in the second quarter of 2021.
The analyst went on to predict that as NCT Dream was able to sell three million copies of their full-length and repackaged albums, the separate operating profit alone might reach 34.4 billion won.
Apart from the overwhelming performance of EXO's agency in the second quarter, SM Entertainment's sales and operating profit in the second half of 2021 are also expected to grow.
In particular, the company's consolidated operating profit is predicted to exceed 85 billion won. The analyst said that the significant factor for this is that NCT 127 is planning to release their third studio album and repackaged version between July and December.
Besides NCT 127's upcoming release, EXO D.O.'s solo debut is also anticipated. The "Growl" singer is set to drop his first solo album in nine years since his debut in the boy group.
In the case of JYP Entertainment, Lee Ki-hoon stated that the label's sales and operating profits in the second half of 2021 will be greatly affected by Stray Kids' comeback.
Additionally, the analyst predicted that Stray Kids' album sales would surpass that of TWICE's for the first time since the re-rating of the performance valuation after the girl group's growth.
Stray Kids has shown incredible growth while they participate in Mnet's "Kingdom." And because of their splendid performance on the show, many are anticipating the group's upcoming comeback, which is more meaningful to the fans as all eight members will take part.
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Meanwhile, TWICE is set to release their first-ever English-language digital single, which is projected to receive great feedback from the fans and also help in JYP Entertainment's sales and operating profit in the second half of 2021.
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SM Entertainment to Organize a "2021 SMile Music Festival" Online
In other news, SM Entertainment is scheduled to hold the "2021 SMile Music Festival."
Since 2015, the company has been conducting the "SMile Music Festival," which is their representative social contribution program to provide support to the youth in developing their dreams through music.
SM Entertainment's "SMile Music Festival" is open to dance and vocal teams of not more than five people and aged 14 to 19. These teams should have been actively promoting in schools, institutions, and organizations in South Korea for more than five months.
Further details can be found on the official website of SMTOWN and SMile Music Festival (smilesmf.kr).
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Written by Mhaliya Scott