'BTS Comeback Effect' Drives Hybe to Record-High Q1 Revenue of 698.3 Billion Won (Comprehensive)

Operating Loss of 196.6 Billion Won...
"One-Off Expense from Bang Si-hyuk's Stock Donation Recognized"

This Year’s Focus: 'Multi-Home, Multi-Genre' Strategy Advancement...
"Commitment to High-Quality Growth"

Hybe achieved its highest-ever first quarter revenue as the comeback of BTS combined with the rapid growth of new artists. However, the company posted an operating loss due to the recognition of large one-off costs.

Hive headquarters in Yongsan-gu, Seoul. Photo by Jin-Hyung Kang aymsdream@

On April 29, Hybe announced that its consolidated revenue for the first quarter of this year reached 698.3 billion won, up 39.5% from the previous year’s first-quarter record of 500.6 billion won. The company noted that this achievement is particularly meaningful, as the first quarter is traditionally considered the off-season for the entertainment industry.

Direct participation revenue, including album sales, concerts, and advertising, reached 403.7 billion won, a 24.5% increase compared to the same period last year. In particular, album sales soared by 99% to 271.5 billion won. BTS’s fifth studio album, "Arirang," drove this strong performance, selling 3.98 million copies on its release day alone. According to global music data analysis firm Luminate, "Arirang" also set a new weekly sales record for a group since 1991, with 208,000 LPs sold in a single week.

"Arirang" became the first album by a Korean artist to top the Billboard 200, the Billboard main album chart, for three consecutive weeks. The title track "Swim" also marked BTS’s seventh number one on the main singles chart, the Hot 100. Other Hybe artists such as Enhypen, Cat’s Eye, and Cortis also delivered strong performances.

During the same period, indirect participation revenue rose 65.5% to 294.7 billion won. MD and licensing revenue increased by 29%, while fan club revenue surged by 69%. The MD and licensing segment benefited from strong sales of tour merchandise, including BTS light sticks, and character goods featuring Hybe Music Group artists. Hybe emphasized that fan club revenue climbed steeply thanks to robust pre-sale demand for BTS’s world tour concerts. In addition, Weverse, the fan platform that turned an annual profit last year, saw its average monthly active users (MAU) in the first quarter hit an all-time high of 1,337, up 20% from the previous quarter.

In contrast, operating profit declined, resulting in a loss of 196.6 billion won. The company explained, "A one-off cost of 255 billion won was recognized as an expense due to the personal contribution (stock donation) by Hybe’s largest shareholder, Chairman Bang Si-hyuk, for employee performance bonuses. This led to the recorded loss." The company added, "This cost is a one-time expense that does not involve an outflow of assets." Furthermore, "Adjusted operating profit, which reflects actual business performance, amounted to 58.5 billion won, up 170.8% year-over-year, with an adjusted operating margin of 8.4%," the company said.

Starting in the second quarter, many Hybe Music Group artists—including Tomorrow X Together, Le Sserafim, TWS, ILLIT, and Cortis—will resume activities with new album releases. In addition, the results from the BTS world tour are expected to be reflected, which is anticipated to further boost both revenue and operating profit.

In a conference call held for the earnings announcement, Hybe CEO Lee Jaesang stated, "The complete sellout of stadium shows, averaging over 50,000 attendees each, is a powerful indicator of the strength of BTS’s intellectual property (IP)." He emphasized, "The solidarity of 'ARMY' fans across North America, Europe, and Asia demonstrates the global expansion of K-pop."

He added, "This year, we will continue to deliver outstanding performances that befit the reputation of our artists," and said, "By advancing our 'multi-home, multi-genre' strategy, we will spread second and third success stories, achieving qualitative growth for existing artists and quantitative growth for new artists."

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