YG PLUS Reports Operating Profit of 1.4 Billion KRW in Q1, Turning to Black Year-on-Year

[Asia Economy Reporter Hyunseok Yoo] YG PLUS announced its preliminary operating results for the first quarter of this year on the 12th.

On a consolidated basis, first-quarter sales amounted to 26.598 billion KRW, operating profit was 1.426 billion KRW, and net profit for the period was 3.241 billion KRW. Sales increased by 39.04% compared to the same period last year, and both operating profit and net profit turned positive during the same period.

The company stated, "Despite the traditional off-season, we achieved meaningful results due to increased music and MD sales from artist activities, performance in financial investment business, and the restructuring of loss-making businesses."

The company explained that these results are the outcome of continuous efforts to expand core businesses and improve profitability. Entertainment-related business sales, including music, MD, and advertising, grew to 66% of total sales on a consolidated basis in 2020. As of the first quarter of this year, they accounted for about 80% of total sales, establishing themselves as a solid core business. Additionally, the company contributed to profitability improvement by decisively restructuring subsidiaries with poor profitability and reorganizing to focus on the entertainment business, thereby enhancing efficiency.

The company added, "Although uncertainties such as the prolonged COVID-19 pandemic remain, based on the stable foundation we have built so far, we will accelerate the expansion of our entertainment business from this year to achieve meaningful growth."

Meanwhile, YG PLUS began distributing albums and one-source distribution for HYBE and its affiliates starting from the second quarter. According to HYBE, major artists such as BTS and Tomorrow X Together are expected to be active in the second quarter.

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