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SM ENTERTAINMENT, Ordinary Profit Forecast for the Fiscal Year Revised Downward to an Unexpected 55% Decrease

Wed Nov 5, 2025 1:30 pm JST Earnings

4772 SM ENTERTAINMENT JAPAN Co.,Ltd. 【J-GAAP】

Earnings Report

SM ENTERTAINMENT JAPAN Co.,Ltd. <4772> [TSE Growth] announced its financial results in the afternoon session on November 5th (13:30). The consolidated ordinary profit for the cumulative third quarter of the fiscal year ending December 2025 (January to September) dropped 35.3% from the same period last year to 236 million yen.

In addition, the full-year forecast for consolidated ordinary profit has decreased 59.2%, from the previous forecast of 409 million yen to 167 million yen (compared to 374 million yen in the previous period). This changes the outlook from an anticipated profit increase to a projection of a 55.3% decrease in profit. However, the full-year forecast for consolidated net income has been revised upward 1.5%, from the previous forecast of 405 million yen to 411 million yen (compared to 787 million yen in the previous period), and the declining rate is expected to decrease from 48.5% to 47.8%.

Based on the full-year plan announced by the company after the downward revision, our estimate of the consolidated ordinary profit for the July to December period (second half) has decreased 90.6%, from the previous forecast of 267 million yen to 25 million yen (compared to 46 million yen in the same period of the previous year). This changes the outlook from an anticipated profit increase to a projection of a 45.7% decrease in profit.

In the most recent three-month period, from July to September (3Q), the consolidated ordinary profit surged 2.5 times that of the same period last year, reaching 94 million yen. The operating profit margin improved from 1.9% in the same period last year to 3.4%.

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Actual Results

Accumulated Results 3rd Quarter
Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Progress Rate vs. First Half Announce Accounting Standards
Jan - Sep, 2023 7,499 366 376 318 2.8 196.9 Nov 2, 2023 J-GAAP
Jan - Sep, 2024 7,521 363 365 307 2.7 97.6 Nov 6, 2024 J-GAAP
Jan - Sep, 2025 7,463 225 236 460 4.0 141.3 Nov 5, 2025 J-GAAP
YoY -0.8% -38.0% -35.3% +49.8% +50.2%

Guidance Update

Second Half Update

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Jul - Dec, 2025 Prev 4,999 267 267 40 0.3 2 Aug 4, 2025 J-GAAP
Jul - Dec, 2025 New 4,728 15 25 46 0.4 2 Nov 5, 2025 J-GAAP
Revision Rate -5.4% -94.4% -90.6% +15.0% +17.6%

Full Year Update

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Dec, 2025 Prev 9,866 405 409 405 3.5 2 Feb 5, 2025 J-GAAP
Dec, 2025 New 9,595 153 167 411 3.6 2 Nov 5, 2025 J-GAAP
Revision Rate -2.7% -62.2% -59.2% +1.5% +1.7%

Current Period Guidance

Second Half Results

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Jul - Dec, 2024 4,523 46 46 503 4.4 1 Feb 5, 2025 J-GAAP
Jul - Dec, 2025 Guidance 4,728 15 25 46 0.4 2 Nov 5, 2025 J-GAAP
YoY +4.5% -67.4% -45.7% -90.9% -90.8%

Current Period Guidance

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Dec, 2023 8,910 181 191 261 2.3 0 Feb 6, 2024 J-GAAP
Dec, 2024 9,716 364 374 787 6.8 1 Feb 5, 2025 J-GAAP
Dec, 2025 Guidance 9,595 153 167 411 3.6 2 Nov 5, 2025 J-GAAP
YoY -1.2% -58.0% -55.3% -47.8% -47.8%

Quarterly Results

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Operating Profit Margin Announce Accounting Standards
Jul - Sep, 2024 2,328 45 37 23 0.2 1.9 Nov 6, 2024 J-GAAP
Oct - Dec, 2024 2,195 1 9 480 4.2 0.0 Feb 5, 2025 J-GAAP
Jan - Mar, 2025 2,180 42 47 41 0.4 1.9 May 2, 2025 J-GAAP
Apr - Jun, 2025 2,687 96 95 324 2.8 3.6 Aug 4, 2025 J-GAAP
Jul - Sep, 2025 2,596 87 94 95 0.8 3.4 Nov 5, 2025 J-GAAP
YoY +11.5% +93.3% +154.1% +313.0% +310.0%

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