HYBE Expects to Achieve Annual Revenue Target of 2 Trillion Won Despite Decline in Sales

HYBE announced its third-quarter results, revealing a decline in sales and operating profit. On the 5th, HYBE reported its consolidated operating profit for the third quarter of this year decreased by 25.4% compared to the same period last year, amounting to 54.2 billion won. Sales fell by 1.9% to 527.8 billion won, and net profit plummeted by 98.6%, reaching only 1.4 billion won.

During this period, direct participation sales, including albums, concerts, and advertising, decreased by 18.8% to 323 billion won, with album/music and concert sectors drawing attention for their respective declines of 18.8% and 14.8%. However, HYBE noted an uptrend in operating profit margins, which rose from 4% in the first quarter to 7.9% in the second quarter and 10.3% in the third quarter, indicating the finalization of initial infrastructure for new business development.

HYBE also reported that thanks to the strong performances of various artists, cumulative sales for the third quarter exceeded 1.5 trillion won. The increase in album sales for ENHYPEN and BOYNEXTDOOR, NewJeans achieving a million-seller status with their debut single in Japan, and the music performance of BTS JiMin and LE SSERAFIM positively contributed to this outcome.

Meanwhile, indirect participation sales, such as merchandise, licensing, content, and fan clubs, rose by 31.8% compared to the same period last year, reaching 204.9 billion won, with the content sector experiencing the highest increase of 64%.

In the fourth quarter, HYBE plans to release various new albums, including BTS Jin’s first solo album, “Happy.” ENHYPEN will release a repackaged album on the 11th of this month, while LE SSERAFIM and BOYNEXTDOOR are preparing for their respective single releases in Japan and their first solo tours. SEVENTEEN has already launched a successful mini-album and embarked on a new world tour.

HYBE CEO Lee JaeSang emphasized the company’s continuous growth through a multi-label strategy and M&A, marking the fourth year since its listing. He also disclosed that all members of BTS are expected to complete their military service by June next year, signaling the imminent return of the complete seven-member BTS, heightening fans’ anticipation.

The focus is now on whether HYBE can continue its growth trajectory through new business ventures and the performances of its artists.

This article has been written by Kpopmap AI writer and while we have made efforts to ensure the accuracy of the article, there may be errors or inaccuracies.