Hive Breaks Record for Highest Sales Last Year... Operating Profit Down 37.5%

Sales Reach 2.2545 Trillion Won Last Year...
Over 2 Trillion Won in Sales for Two Consecutive Years
Operating Profit at 184.8 Billion Won... Impacted by Initial Investment Costs
"BTS Full Group Comeback Expected This Year... Profitability to Improve"

HYBE recorded annual sales in the 2 trillion won range for the second consecutive year, setting a new record for highest sales. However, operating profit decreased by nearly 38% due to changes in the sales composition by artist and initial investment costs.

HYBE announced on the 25th that its consolidated annual operating profit for last year was preliminarily estimated at 184.8 billion won, down 37.5% from the previous year. During the same period, sales increased by 3.5% to 2.2545 trillion won, and net loss was recorded at 3.4 billion won, returning to a deficit.

Hive logo. Provided by Hive

Looking at the performance on a quarterly basis, sales and operating profit in the fourth quarter of last year were 725.3 billion won and 65.3 billion won, respectively. Compared to the same period last year, sales increased by 19.2%, but operating profit decreased by 26.7%.

The 2.2545 trillion won in sales recorded by HYBE last year is the highest figure since its establishment. Specifically, direct participation sales fell 1.8% year-on-year to 1.4453 trillion won, while indirect participation sales rose 14.5% to 809.3 billion won. Within direct participation sales, the music album segment, which holds a large share, decreased by 11.3% compared to the previous year, but the concert segment showed a growth trend of 25.6%. HYBE analyzed this as an effect of diversified consumption patterns among fans centered on offline activities following the end of the pandemic.

In the music album segment, HYBE’s domestic artists’ annual Circle Chart market share rose by 2 percentage points year-on-year to 40%. Among the artists, SEVENTEEN recorded cumulative album sales exceeding 10 million copies for two consecutive years. In the music streaming segment, 15 songs by HYBE artists appeared in the top 20 of the 'Global K-pop Chart.' Solo songs by BTS members Jin, Jimin, V, Jungkook, and Megan Thee Stallion’s 'NEVA PLAY,' featuring RM, each appeared on the Billboard 'Hot 100.'

Concert sales also reached the highest ever since HYBE’s founding, as HYBE artists held 147 concerts and 25 fan meetings last year. In particular, concert sales in the fourth quarter of last year were 188.9 billion won, more than double compared to the same period last year.

In indirect participation sales, concert, MD, and licensing segment sales increased by 29.1% year-on-year to 420 billion won, marking the highest performance ever. HYBE Music Group artists conducted large-scale world tours, boosting sales of MD and light sticks. Character merchandise inspired by members of BTS, SEVENTEEN, and TOMORROW X TOGETHER also gained popularity.

HYBE’s U.S. subsidiary, HYBE America, also showed strong results. Artists under Big Machine Label Group, a label under HYBE America, achieved number one on a total of 10 Billboard charts, and among them, Carly Pearce was nominated for the Grammy Awards for the second consecutive year.

However, consolidated annual operating profit was 184.8 billion won, down 38% from the previous year. HYBE explained that the decrease in operating profit was influenced by the hiatus in team activities due to BTS members fulfilling their military service obligations and changes in sales composition by artists due to the debut of new groups. Investment costs for the debut of the U.S.-localized girl group CATS EYE and personnel and infrastructure investment costs related to the establishment of HYBE Latin America also affected the decline in profit margin. Preemptive investment costs to secure growth momentum in new growth businesses such as Weverse and gaming were also reflected.

HYBE expects profitability to improve this year. In addition to BTS completing their military service and making a comeback, the economies of scale generated by the growth of HYBE artists, strengthened artist management capabilities through the recruitment of Cade Hudson, and revenue generation from HYBE Latin America are expected to act as factors for profitability improvement.

Performance in the new growth business sector is also anticipated. The Weverse digital membership service, which started in December last year, will have its revenue reflected in performance starting from January this year after the free usage period ends. HYBE IM will strengthen its publishing lineup through 'Architect: Land of Exile' and Bonfire Studio’s new title.

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