BTS Agency HYBE "Q3 Revenue 445.5 Billion KRW, Considering Shareholder Return Plan"

Operating Profit of 60.6 Billion KRW Recorded... 8% Decrease Compared to Same Period Last Year
Considering Stock Buybacks and Dividend Increases to Enhance Shareholder Value

Group BTS under HYBE. Photo by Big Hit Music

[Asia Economy Reporter Lee Isul] HYBE announced on the 3rd that it recorded sales of 445.5 billion KRW and operating profit of 60.6 billion KRW in the third quarter of this year. Sales increased by 31%, while operating profit decreased by 8%.

Among the third-quarter sales, direct participation sales, consisting of albums, performances, and advertisements, amounted to 206.2 billion KRW. Within direct participation sales, album sales were the largest portion at 129.2 billion KRW. Performance sales recorded 47.2 billion KRW. HYBE Labels artists who released albums in the third quarter include Seventeen, Enhypen, NewJeans, and J-Hope. Performance sales reflected revenues related to the world tours of Seventeen and Tomorrow X Together.

Indirect participation sales, including MD, licensing, content, and fan clubs, amounted to 239.3 billion KRW. In indirect participation sales, increased MD sales from HYBE Labels artists' world tours, as well as achievements in content and games, were evenly reflected.

Among indirect participation sales, MD and licensing sales were the highest at 114.7 billion KRW. Tour-related products from By BTS, Seventeen, and Tomorrow X Together played a major role in the MD and licensing segment. Content sales were recorded at 107.2 billion KRW, nearly matching MD and licensing. The content segment was significantly contributed to by BTS DVDs and Disney Plus content. Sales from the game ‘In the SEOM with BTS,’ released at the end of June, were also reflected in the content segment.

Operating profit in the third quarter was 60.6 billion KRW, down 8% from the same period last year. HYBE explained, "Costs for producing audition programs for rookie debuts and the cost of offline performances were reflected." They added, "Regarding offline performances, based on the demand confirmed through this year's performances, we expect to expand the scale further and secure better profitability."

Weverse, which oversees the platform segment, recorded an average MAU (monthly active users) of 7 million in the third quarter, an increase of about 16% compared to the previous quarter.

HYBE stated that it will expand the application of its successful formula based on a multi-label strategy to the global market, seek boundaryless expansion of fan experiences and entertainment businesses based on technology, and keep open possibilities for investment and collaboration. The multi-label system will focus on transplanting the successful experience in Korea to the Japanese and U.S. markets. &TEAM will debut locally in Japan in the fourth quarter of this year, and next year, the outline of a global girl group project that will debut through auditions in the U.S. will be revealed.

HYBE also hinted that it may implement shareholder return measures to enhance shareholder value in the near future. CEO Park Ji-won said, “We are reviewing mid- to long-term shareholder return plans, including share buybacks and dividends,” and added, “We plan to share more concrete plans regarding shareholder returns in early 2023.”

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