Step 1: Ask the heavens to send angels to earth.
Step 2: Recruit them into your company and train them.
Step 3: Debut them as singers a few years later and wait a bit.
Step 4: Smile because you’re probably ballin’ right now.
So SM released its financial report for the first quarter of 2010 recently, and let’s just say it was pretty jjang.
…the company revenue for the quarter recorded an all time high of 22.7 billion won, with a record 10.4 billion won in operating profits, a huge increase of 471% from same period last year.
SM said “The main reason for this revenue and profit increase is due to explosive popularity of SNSD’s 2nd album Oh! and increased overseas royalties resulting from energetic Asia activities by SM artists.”
At the time of Gee’s release SME stock price was about 1500 won, now it is about 7900 won so in terms of business achievement SM is doing awfully great, and SNSD’s significant contribution to this is collectively acknowledged by the industry and shareholders(They made lots of money and some talk about sending gifts to the girls^^).
Although SM’s pockets got a huge boost from our girls (and thus showing how successful they are), it’s not all good news as further explained:
It’s relevant to be aware of SM’s business since it affects the activity plans of SM artists. Now that SM is doing so well people might think SM artists can get some rest now but in fact it works in the opposite direction. Public company like SME has huge pressure to continue to show growth so the company must find ways to maintain this huge profit. Rather than huge increases it’s better to have stable growth and a balanced portfolio, which SME doesn’t currently have.
Thus in conclusion this translates to continuation of overworked schedules for current SM artists. It’s why SM is preparing for SNSD Japan and Asia promotion, and Korean comeback will occur as soon as possible (later this year or early next year at the latest). Almost all SM artists have comebacks this year the more successful they are the more stable SME becomes and a better situation for the artists.
A 471% increase for a well-established business within the time-span of 1 year is more than what any shareholder or company could realistically dream for. Their rise to the top was thanks to the hard work of our girls even before the release of Gee. ^^ Topping polls, breaking records, expanding into Asia, and (practically) sweeping awards this past year, it’s no doubt that they were the perfect combination for SM. Let’s just hope the company still remembers how and why they were able to achieve such a huge growth within a short period of time and give the girls some well deserved rest here and there.