HYBE Reports 38% Revenue Growth Driven by Concerts, Album Sales Lag Behind

K-pop powerhouse HYBE announced on Monday that its third-quarter revenues jumped 38%, thanks largely to concerts featuring BTS’ Jin, SEVENTEEN, and TOMORROW X TOGETHER. However, the company still reported an unprofitable quarter as lagging album sales weighed heavily on overall earnings.

The company posted an operating loss of 42.2 billion Korean won (approximately $30 million), reflecting both higher income taxes and pressure on its recorded music business, which declined 11.5% year-on-year due to fewer new album releases. EBITDA (earnings before interest, tax, depreciation, and amortization) also came in negative at 16.8 billion Korean won ($12 million) for the quarter. HYBE’s stock ended flat on the Seoul Stock Exchange, recovering from an earlier 3.7% dip, with the company having reported one other unprofitable quarter in Q4 2024.

Despite these challenges, total third-quarter revenue reached 727.2 billion Korean won ($519 million), fueled by higher sales from recorded music, concerts, advertisements, and appearances. HYBE classifies this segment as “artist direct involvement revenue,” which grew nearly 48% to 477.4 billion Korean won ($340.6 million) — accounting for 66% of overall sales.

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Concert revenue was the standout performer, driven by Jin’s first solo tour spanning Japan, the United States, England, and the Netherlands. Concert earnings surged over 200% to 245 billion Korean won ($175 million), highlighting the continued global demand for K-pop live performances.

However, recorded music revenue fell to 189.8 billion Korean won ($135.4 million), down from 214.5 billion Korean won a year earlier. This decline underscores ongoing challenges in HYBE’s album sales strategy, as the company continues to rely heavily on live events and artist-driven engagements to maintain revenue growth.

As HYBE navigates a shifting music industry landscape, the results reflect the growing importance of concerts and personal appearances as major revenue drivers, even amid fluctuating physical and digital album sales.

Source: (1)