3rd Quarter Revenue: 727.2 Billion KRW…Operating Loss: 42.2 Billion KRW
HYBE reported an operating loss of 42.2 billion KRW for the third quarter of this year, turning into a deficit, as disclosed on the 10th. Provided by HYBE
‘HYBE achieved its highest-ever quarterly revenue in Q3 this year, thanks to strong world tour performances. However, it turned into an operating loss due to expanded investments and one-time expenses.’
‘HYBE announced that its consolidated revenue for Q3 this year was 727.2 billion KRW, an increase of 37.8% compared to the same period last year, as disclosed on the 10th. This surpassed the previous record of 726.4 billion KRW set in Q4 last year. The cumulative revenue until Q3 this year is approximately 1.93 trillion KRW, nearing 2 trillion KRW.’
‘The operating loss for Q3 was 42.2 billion KRW, turning into a deficit. This was influenced by proactive investments to expand global artist intellectual property (IP) and one-time costs related to restructuring in the North American business.’
‘Direct participation revenue for Q3 was 477.4 billion KRW, accounting for about 66% of the total revenue. Concert revenue increased more than threefold year-on-year to 245 billion KRW, driven by large-scale performances such as the global solo tour of BTS member Jin and world tours of TXT and ENHYPEN. Album sales revenue decreased to 189.8 billion KRW, due to fewer artist comebacks compared to the same period last year.’
‘Indirect participation revenue, including merchandise, licensing, content, and fan club sales, was 249.8 billion KRW, marking a 22% increase from the same period last year. The merchandise and licensing segment, which represents the largest portion, saw a 70% increase to 168.3 billion KRW, driven by the sale of tour merchandise and light sticks related to artist tours and IP-based character products.’
‘The global superfans platform Weverse achieved profitability on a cumulative basis for Q3, thanks to the introduction of new business models such as digital memberships and advertising.’
‘HYBE recorded a 42.2 billion KRW operational loss in Q3, a 5.8% loss. Factors leading to a 12 percentage point drop in operating profit margin include proactive investments in expanding global artist IP and one-time expenses related to restructuring in the North American business.’
‘HYBE CEO Jaesang Lee stated, “The fundamentals of our company remain strong, given that the core K-pop segment of HYBE is expected to maintain profitability in the 10%~15% range this year.” He further commented, “With the factors negatively impacting our profitability expected to be mostly resolved by the fourth quarter of this year, we anticipate that the improvement in profit structure will begin in earnest from next year.”‘