[Click eStock] "FNC Entertainment Expected to Achieve Performance Turnaround... March Album Release to Drive Momentum"

On March 5, independent research firm GL Research analyzed that FNC Entertainment has entered a phase of performance turnaround, driven by the global expansion of the fanbase for its core IP, P1Harmony, and the growth in album and concert revenue.

FNC Entertainment is a comprehensive entertainment company primarily engaged in artist management and music and content production. Recently, the company has been restructuring its business model to focus on core artists, resulting in improved profitability. Last year, on a consolidated basis, revenue reached 102.4 billion won, marking a 19% year-on-year increase. The operating loss was also significantly reduced, with profitability improving to near break-even levels.

The main driver of this performance improvement is P1Harmony. The group has expanded its global fandom, especially in North America, simultaneously boosting album sales, concerts, and merchandise revenue. The 8th mini album released last year sold approximately 460,000 copies, a 35% increase compared to the previous release. The group also expanded the scale of its concerts by holding arena-level tours throughout North America. The number of subscribers to the global fandom platform Weverse is expected to reach about 1.84 million by the end of 2025, showing a rapid expansion of the fanbase.

In 2026, the company is expected to maintain growth momentum through new album releases. P1Harmony is set to release its 9th mini album 'UNIQUE' on March 12, with additional album releases planned within the year. Album sales are anticipated to increase to about 600,000 to 700,000 copies per release. The growth of the global fanbase is also likely to drive further increases in concert and merchandise revenue.

The profitability structure is also improving from the perspective of the artist portfolio. Senior artists such as FTISLAND and CNBLUE provide a stable revenue base, while newer artists like P1Harmony and Ampersand One are leading growth, signaling a generational shift. Notably, the profit contribution from newer artists is expected to rise from 3% in 2023 to 59% in 2025, reflecting a shift towards a profitability-centered structure.

Park Changyoon, a researcher at GL Research, stated, "FNC Entertainment is seeing a visible turnaround in performance, driven by the global expansion of P1Harmony's fanbase and growth in album and concert revenue. If group activities continue to expand throughout the year, starting with the new album release in March, the trend of performance improvement will become even more pronounced."

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