HYBE, Q1 Operating Profit 21.7 Billion KRW... 9% Increase YoY

[Asia Economy Reporter Donghyun Choi] HYBE, the group that nurtured BTS (Bangtan Sonyeondan), announced on the 4th that it recorded provisional results of 178.3 billion KRW in sales and 21.7 billion KRW in operating profit for the first quarter of this year. Compared to the previous year, sales and operating profit increased by 29% and 9%, respectively.

According to HYBE, indirect artist participation businesses such as official merchandise (MD), licensing, and content businesses showed strong performance and drove the results. Sales from MD and content using the IP (intellectual property) of major artists increased by 89% and 360% year-on-year to 64.7 billion KRW and 37.2 billion KRW, respectively. Advertising and appearance fees and fan club sales also increased by 63% and 24% compared to the same period last year. The proportion of indirect artist participation sales in the first quarter of this year rose by about 12 percentage points compared to the previous quarter (Q4 2020), reaching 62% of total sales.

The growth of the global fan community platform Weverse also continued. The monthly active users (MAU) of Weverse averaged about 4.9 million in the first quarter, slightly increasing compared to the previous quarter.

HYBE explained that the recent organizational restructuring, including the spin-off decision of ‘Big Hit Music,’ will enable independent yet efficient operations in each division through the reorganization of HYBE’s three main business pillars: label, solution, and platform units.

HYBE also presented a blueprint for business synergy with the recently acquired Ithaca Holdings. HYBE plans to create various synergies by combining its solution and platform capabilities with the strengthened global artist IPs such as Justin Bieber and Ariana Grande. Additionally, based on Ithaca Holdings’ expertise and network in the U.S. music market, HYBE plans to expand the entry of HYBE Labels artists into the U.S. market and nurture new artists on the global stage.

Park Ji-won, CEO of HYBE HQ, said, “In the second quarter, major artists from HYBE Labels, including NU’EST and ENHYPEN, who have already made successful comebacks, as well as BTS and TOMORROW X TOGETHER, are scheduled to be active,” adding, “We will respond flexibly to uncertainties in management conditions such as the prolonged COVID-19 situation.”

This content was produced with the assistance of AI translation services.