Hybe, the innovative K-pop entertainment powerhouse, announced record-breaking first-quarter revenue driven by the highly anticipated full-group return of BTS and the growing momentum of its newer acts. Despite this revenue surge, the company reported an operating loss, primarily due to a one-time accounting charge related to employee bonuses funded by its chairman.
The entertainment giant reported first-quarter revenue of 698.3 billion won, marking a significant 40 percent increase from 500.6 billion won recorded in the same period last year.
While Hybe achieved an adjusted operating profit of 58.5 billion won, translating to an 8.4 percent operating margin (after excluding a one-time, non-cash accounting charge), the company ultimately registered an operating loss on an unadjusted basis. This was primarily due to a substantial 255 billion won expense recognized from a stock gift provided by its largest shareholder, Chairman Bang Si-hyuk, intended to fund employee bonuses. Hybe clarified that, under accounting rules, this entry must be booked as an expense, though it carries no impact on the company’s net assets.
Revenue from direct participation, encompassing recorded music sales, concerts, and advertising, saw a healthy 25 percent year-on-year growth, reaching 403.7 billion won. Notably, recorded music revenue alone surged by an impressive 99 percent, almost doubling to 271.5 billion won.
This remarkable growth was largely propelled by BTS’s highly anticipated fifth full-length album, “Arirang,” marking the group’s first full-band project in approximately four years. The album demonstrated immense popularity, selling 3.98 million copies on its release day alone.
Meanwhile, Hybe’s newer K-pop acts also showed significant traction. Katseye garnered over 32 million monthly Spotify listeners, and Cortis’s debut album, “COLOR OUTSIDE THE LINES,” achieved cumulative sales of 2 million copies.
Indirect-participation revenue, covering merchandise, licensing, content, and fan club operations, experienced a substantial 66 percent year-on-year increase, reaching 294.7 billion won. Within this segment, merchandise and licensing revenue grew by 29 percent, and fan club revenue surged by an impressive 69 percent, fueled by strong presale demand for BTS’s upcoming world tour. Sales of tour-specific merchandise, such as the group’s official light stick, alongside character merchandise featuring artists from across Hybe’s diverse music labels, were key contributors to this robust performance.
Weverse, Hybe’s global fandom platform, continued its strong performance, averaging a record high of 13.37 million monthly active users. Looking ahead, Hybe anticipates continued growth in the second quarter, driven by new releases from popular groups like Tomorrow X Together, Le Sserafim, and Illit, coupled with ongoing revenue generation from the BTS world tour.
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