[Weekend Money] P1Harmony to Revive FNC Entertainment...Profit Expected This Year

Global popularity of "P1Harmony" turns them into a cash cow
Restructuring toward a music IP-centered business model adds growth momentum

P1Harmony. FNC Entertainment website

The global popularity of P1Harmony, a group under FNC Entertainment (FNC), is rising by the day. Accordingly, the market is beginning to project that FNC, which had posted long-running losses, will turn a profit this year.

Since their debut in 2020, P1Harmony has targeted the global market with a focus on North America, and has continued on a growth trajectory across albums, tours, and the overall IP business, establishing itself as FNC's next-generation cash cow.

The first-week sales of P1Harmony's albums released in 2024–2025 have steadily increased compared with previous releases, and cumulative sales are building up rapidly. Based on this, they have expanded their tour regions beyond North America to South America, Europe, and Australia, entering a phase in which they are actually expanding their paying audience on a global scale.

The partnership with a major North American agency, appearances at KCON and global music festivals, and increased exposure on local broadcast and digital channels are all helping to position P1Harmony as a team that has been validated overseas first. This, in turn, is driving growth in ancillary revenue such as per-show scale and guarantees, as well as MD (merchandise) sales.

P1Harmony's contribution to earnings is gradually increasing. In 2026–2027, the group is expected to enter a phase of leveling up, in which annual concert attendance and related revenue will make a meaningfully higher jump compared with the past.

FNC Entertainment's business structure is also changing. The company is moving away from a model centered on variety-show management and comprehensive entertainment, and is reorganizing its business pillars around IP such as music, actors, and dramas, which can generate direct and indirect revenue.

The existing band lineup, including FT Island, CNBLUE, and N.Flying, is also maintaining a stable fandom and tour demand. The company is building a structure that combines the stability of mature IP with the leverage of growth IP. Based on this, it is assessed to be in a phase of closing out its previously unstable performance period and attempting a structural turnaround.

Its results are also expected to improve gradually. On a consolidated basis, last year's revenue is projected to have reached 97.4 billion won, up 12.9% year-on-year, while the operating loss is expected to have narrowed to 1.5 billion won. This year, revenue is estimated to reach 110.3 billion won (up 13.2% year-on-year), with an operating profit of 1.4 billion won, marking a successful turnaround to the black.

Yoo Seongman, an analyst at Leading Investment & Securities, said, "FNC Entertainment is entering a phase of global leverage with P1Harmony as its core growth axis," adding, "On the back of growth in music IP, including P1Harmony, the company is closing out its previously unstable performance period and entering a phase of attempting a structural turnaround."

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