Hybe, the powerhouse behind K-pop sensation BTS, has announced record-breaking first-quarter revenue, reaching 698.3 billion won (US$468 million) for January-March. This marks a significant 39.5 percent year-on-year increase, achieving an all-time high for a first quarter—typically a slower period for the music industry. The strong financial performance reflects robust growth across its diverse artist activities.
Despite the surging revenue, the company reported an operating loss of 196.6 billion won, contrasting with a 21.6 billion won profit a year prior. This figure fell short of the market consensus of a 42.6 billion won profit compiled by Infomax. The net loss for the quarter stood at 156.7 billion won.
Hybe clarified that the reported loss was primarily due to a substantial one-off expense of 255 billion won. This non-cash item resulted from Chairman Bang Si-hyuk, the company’s largest shareholder, granting shares from his personal holdings as employee incentives. Excluding this unique item, Hybe’s adjusted operating profit for the quarter would have been a healthy 58.5 billion won.
Revenue generated from artists’ “direct participation” activities, encompassing album and music sales, concerts, and advertising, surged by 25.2 percent year-on-year to 403.7 billion won. A significant driver of this growth was a near doubling of album and music sales to 271.5 billion won, fueled by the phenomenal success of BTS’s fifth full-length album, “Arirang,” launched last month.
The “Arirang” album set new records, selling an astonishing 3.98 million copies on its release day alone. Data from global music analytics firm Luminate further highlighted its impact, confirming 208,000 copies sold in a single week, marking the highest sales for any group since tracking began in 1991.
BTS continued its global chart dominance, with “Arirang” topping the U.S. Billboard 200 chart for three consecutive weeks—a first for a K-pop act. Its lead single, “Swim,” also achieved significant success, becoming the band’s seventh No. 1 hit on the Billboard Hot 100 chart.
Beyond BTS, other artists under the Hybe umbrella, including Enhypen, Katseye, and Cortis, also made significant contributions to the company’s overall revenue growth during the quarter.
Revenue from artists’ “indirect participation,” which includes merchandise, licensing, content, and fan club memberships, saw an impressive 65.5 percent increase to 294.7 billion won. This surge was primarily driven by high demand for tour-related merchandise and strong presales for the ongoing BTS world tour, underscoring the powerful engagement of the K-pop fandom.
Looking ahead, Hybe projects continued growth in both revenue and operating profit for the second quarter. This optimistic outlook is fueled by upcoming releases from multiple popular groups, including Tomorrow X Together, TWS, and ILLIT, alongside the anticipated full reflection of sales from the highly successful BTS world tour.
CEO Lee Jae-sang, during a recent conference call, emphasized BTS’s unparalleled global appeal, citing sold-out stadium shows attracting over 50,000 fans. He further highlighted that “The strong fan turnout across North America, Europe, and Asia has demonstrably showcased the remarkable global expansion of K-pop,” reinforcing the industry’s widespread international influence.
