Hybe sets new quarterly revenue record with 640.5 bln won in Q2

Hybe, the powerhouse behind the global K-pop sensation BTS, on Wednesday reported revenue of 640.5 billion won (US$465 million) for the second quarter of this year, marking the highest-ever quarterly sales in the company’s history.

The figure surpasses the previous quarterly high of 621 billion won achieved in the same period last year, the company said in a regulatory filing.

For the first half of the year, Hybe recorded total revenue of 1.014 trillion won, marking the second consecutive year of exceeding the 1 trillion-won mark.

“This achievement comes despite the absence of BTS members for group projects due to their ongoing military service,” the company said in a release.

Operating profit for the April-June period fell 37.4 percent on-year to 50.9 billion won while net profit was down 85.9 percent to 16.5 billion won.

Hybe attributed the declines to the initial costs associated with launching various new businesses and the expansion of its rookie artist lineup. The company expects profitability to improve in the third quarter when its artists embark on numerous domestic and international activities.

Leading the company’s highest-ever quarterly sales was revenue from direct artists involvement — which amounted to 423.9 billion won, according to the company.

The sales of albums and music, which accounts for the largest share of the revenue from direct artists involvement, grew 1.5 percent from a year ago to 249.5 billion won.

More than 15 million copies of albums from Hybe artists sold in the first half, accounting for 34 percent of the entire album sales in the country.

Hybe was strong not only in album sales but also in digital music sales. Eight of the top 10 K-pop songs streamed the most globally, excluding South Korea, on Spotify in the first half were from Hybe artists, according to figures from the streaming platform.

In the second half of the year, BTS’ Jin is scheduled to release a solo album while Seventeen will embark on a world tour and release a new album. NewJeans, one of the hottest K-pop girl groups, will hold a world tour next year.

“The second half of 2024 marks the beginning of a new era led by new leadership, and it will be a period to lay the foundation for the company’s mid- to long-term growth through the cultivation of future growth businesses based on music, platforms and technology,” said Lee Jae-sang, the newly appointed CEO of Hybe. “Hybe will further solidify its core competencies while designing future IP (Intellectual Property) and future fandom business models that consider the changing market environment.”