This is for the people interested in this topic. So please move along if you aren’t.
Just saw the news about SM and their operating profit for q4. They have revised their operating profit for 2025 decreasing it from the what was expected.Investors are angry because Chris and clan had promised a 500 billion won operating profit by 2025 with SM 3.0 and are now being told it will be 140 billion won compared to the earlier predicted 170 billion won. This is even with Aespa’s dominance in the charts as well as Riize’s stability and the return of Exo.
YG will most probably be a bit better this year due to blackpink but they’ve shown they’re entirely dependent on one group and have failed to diversify. They’re now about to debut more groups but if they maintain the same formula, they’ll be stuck with more midtier groups who are barely outdoing groups like Ive and Gidle from smaller companies.
It appears that even with chart successes, there’s not much profit if you’re not Hybe or JYPE. Mind you JYPE’s groups have barely been making it in the Korean market.
There have also been a couple of tampering cases which show how unstable the industry is. If you invest and the group decides they want way more money than what’s there and try to break away without getting your returns, is it worth it?
It’s an interesting state of affairs and I would love to know your thoughts especially if you are an active investor.
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