YG Entertainment Q1 profit has surged to ₩95 billion, a dramatic turnaround driven by the rising success of new-generation groups Baby Monster and Treasure. These groups, viewed as successors to BLACKPINK and Big Bang, played a key role in YG’s recovery from a loss of ₩7 billion during the same period last year.

Baby Monster and Treasure lead YG Entertainment Q1 profit spike

On May 9, YG released its earnings for the first quarter, revealing an operating profit of ₩95.25 billion and a 14.7% year-over-year sales increase to ₩100.2 billion. The figures not only exceeded market expectations but also confirmed that YG’s investment in next-gen artists is paying off sooner than anticipated.

Meritz Securities had already raised YG’s target stock price earlier in February, citing early monetization of younger artists’ IP. Shinhan Investment Securities followed, labeling YG as the most undervalued entertainment stock and revising their target to ₩82,000 per share. Analysts predict continued momentum, especially as Baby Monster’s impact extends into Q2 and BLACKPINK’s global tour returns in Q3.

Behind this quarter’s financial surprise are two major contributors: Treasure and Baby Monster. Treasure’s new release in March ignited strong sales, while Baby Monster’s first full-length album—launched last November—maintained enduring popularity, fueling revenue well into 2024.

YG credited its deliberate investment in these low-age IPs, coupled with global tours, merchandise (MD) sales, and international performances, for stabilizing its revenue model. “The balance of profitability and portfolio is stabilizing through increased MD sales tied to global tours,” the company stated. “This marks a shift away from dependence solely on BLACKPINK.”

Looking ahead, YG plans new albums and tours for both Treasure and Baby Monster, with BLACKPINK’s second-half tour expected to further strengthen the portfolio. The agency also expressed readiness to navigate shifts in the Chinese entertainment market and capitalize on global interest.

BLACKPINK remains influential despite individual activities, continuing brand collaborations that reinforce YG’s global presence and IP revenue. Meanwhile, the success of Baby Monster and Treasure signals a completed generational shift, dispelling concerns about YG’s future beyond its iconic first-gen stars.

As attention turns to Yang Hyun-seok’s strategic moves, upcoming concerts, and comebacks from other artists, the next few quarters may mark a defining era in YG’s post-BLACKPINK transformation.