SM ENTERTAINMENT JAPAN announced its results for the cumulative third quarter (January-September) of the fiscal year ending December 2026. Ordinary profit rose year on year, while profit fell sharply in the July-September period, and a loss is expected in 4Q.
SM ENTERTAINMENT JAPAN announced that consolidated ordinary profit for the cumulative third quarter (January-September) of the fiscal year ending December 2026 was ¥325 million, up 37.7% year on year. Progress against the full-year plan was 126.5%, exceeding the initial plan but falling short of the three-year average progress rate.
Meanwhile, consolidated ordinary profit for the July-September period, the latest three-month results, fell 42.6% year on year to ¥54 million, while the operating margin on sales deteriorated from 3.4% to 1.9%.
The company's estimate for 4Q ordinary profit and loss is a ¥68 million loss, compared with a ¥42 million loss in the same period of the previous year. If 4Q performance remains at the same level as 3Q, this could prompt a review of the full-year plan.
Although progress against the full-year plan is ahead of schedule, the widening 4Q loss and lower profit margin are areas of concern based on these results.