SM Entertainment in Deficit for the Past Two Years

[trannas.livejournal.com]

In the morning of March 13th, South Korean media reported that the past two-year deficits for Korea's SM Entertainment company reached around to 1.62 billion won for the year 2008.

According to reports, SM's profits from TVXQ, Super Junior and Girls' Generation net grossed 43.4 billion won. Despite this, there is still a deficit of 1.6 billion for the year.

However, profits for SM in 2008 has grown 30% compared to 2007, but because of BoA's entry into the American market, and because most of SM artists are groups, each event required much more travel/transportation fees and personal management fees than usual. Therefore, despite there was a higher revenue in 2008, SM still reported a deficit year-end.

SM has full confidence in pulling out of deficit at the end of 2009. With BoA's first album in the American market, and the Korean activities for Super Juniors and Girls' Generation, SM's financial situation must improve.

Source: Sohu
Credit: Wendy @ Chocolyn.org



Siwon does not approve.

Comments

[shanny-w.livejournal.com]

What is going on with Boa's album anyways? The only chart results I Saw were at boajjang and they said she debut at #5 on the pop charts at amazon but when I looked she was like #150. Quite the drop?

[trannas.livejournal.com]

Crap. I just checked the Amazon Bestsellers and she's at #38 now. She was #10 on Tuesday/Wednesday...I don't know what's going on at all x_x

[shanny-w.livejournal.com]

Eh, idk how to read those damn lists I guess. She needs more attention. I hope she can climb back up.

[trannas.livejournal.com]

There's a chance her album sales would increase once the radio starts playing her songs. I'm so scared for her :[

[psychedelicred.livejournal.com]

yeah i'm worried for her as well. she's good but whether america will accept her is another thing.

[merlinspants.livejournal.com]

omg :(

[trannas.livejournal.com]

It's about 1.16 million in US currency but that's still a lot *_*

[ashiva.livejournal.com]

I kinda suspect that BoA's US debut marketing efforts will probably eat everything SM earns and their deficit for 2009 will be even larger.

[epicsunshine.livejournal.com]

agree.

[merlinspants.livejournal.com]

ia, i feel bad for her lol :(

[xcherryblossomx.livejournal.com]

Im not that smart yet I know that when you have a deficit its time to start cutting expenses...like expensive gifts to the mistresses

[ashiva.livejournal.com]

Oh snap. (LOLLING)

[anicaasharp.livejournal.com]

[firelights.livejournal.com]

yeah, I'd like to know too.

[anicaasharp.livejournal.com]

BoA's first album in the American market, and the Korean activities for Super Juniors and Girls' Generation
aren't these sm's most expensive ventures?
if so, i have a feeling sm entertainment will be seeing red for a while.

[pretzel-knot.livejournal.com]

WOW. that's quite alot of money right? hmm i would say that boa breaking into the american market is riskier than korean activities for suju and snsd. at least you know that suju and snsd would def make profits in korea (and even outside korea).

[psychedelicred.livejournal.com]

i dont believe this!

[ficcy.livejournal.com]

Super Junior's making their comeback, so I'm guessing they'll be making some profit out of that. But then again, there's BoA's debut in America, which I'm really scared for because I've yet to see an Asian artist make it big there. Oh shizz... BoA. ;~;

[pokiaki.livejournal.com]

BoA coming overseas was not a good idea as I always thought. Costs too much and she won't get that popular here. Album's not that great and she just wont really catch much attention, other than the sales from hardcore fans she already had. In the end, they don't gain much which shows in the deficit. It's the same as Utada Hikaru, her album didn't sell well even tho its better than BoA's! Maybe if they blast Touched and Eat You Up in clubs long enough, it'll get even a bit more recognition.