Hybe reports best quarterly performance in Q3

 Hybe, the K-pop company behind BTS, on Thursday reported record-high quarterly operating profit and revenue for the third quarter, supported by the success of “Butter.”

The company said in a regulatory filing that its operating profit for the July-September period was estimated at 65.6 billion won (US$55.7 million), up 63.33 percent from a year ago. Revenue surged 79.5 percent to 341 billion won with a net profit estimated at 49.5 billion won, up 81.86 percent.

Hybe attributed the increases to the growth of sales in the album, merchandise and licensing sectors.

Album sales rose 21 percent from the previous quarter to 129.7 billion won due to the strong performance of BTS’s megahit single “Butter” and “The Chaos Chapter: Fight or Escape,” a repackaged version of an album by Tomorrow X Together, according to the company.

“Butter,” released in May, spent 10 weeks at No. 1 on the Billboard Hot 100, making it the longest reigning hit this year so far.

Merchandise and licensing sectors logged 76.7 billion won in revenue, up 53 percent from the previous quarter, due to increased sales of merchandise using intellectual property rights of Hybe artists.

The company also reported a 56 percent rise in its quarterly revenue from advertising, television appearance fees, and management to 33.8 billion won.

Earlier in the day, the company announced that it will get into the non-fungible token business through a joint venture with Dunamu, the largest South Korean cryptocurrency operator.

“We will establish a joint venture with Dunamu in the United States to develop a platform where various NFTs based on artists’ IP (intellectual property) rights are traded,” Hybe said, adding that it will continue to expand its IP lineup to include global artists and sports stars.

“We expect further growth in the company’s sales in the fourth quarter when offline concerts resume one after another, starting with the BTS’ concerts in Los Angeles,” CEO Park Ji-won said.

The concert series scheduled for Nov. 27-28 and Dec. 1-2 will be the first in-person concerts to be thrown by the boy group in two years as its previous tour schedules were canceled due to the COVID-19 pandemic.