[Click eStock] "Stray Kids Surpass 1 Million Copies... JYP 3Q Strong Earnings Expected"

"More Than Filling GOT7's Void"… Record-Breaking 3Q Operating Profit Margin
Year-End TWICE Comeback and Expansion of Various Offline Performances Expected

Stray Kids (Source: JYP Entertainment official website capture)

[Asia Economy Reporter Minwoo Lee] JYP Entertainment (JYP Ent.) is expected to post strong earnings for the third quarter of this year, surpassing market expectations. The breakthrough came as Stray Kids' album sales exceeded 1 million copies for the first time, compensating for the previously lacking male idol segment. Further growth is anticipated from large-scale concerts and additional album sales expansion.

On the 19th, Korea Investment & Securities forecasted that JYP Ent. would record consolidated sales of 53.2 billion KRW and operating profit of 18 billion KRW for the third quarter of this year. These figures represent increases of 54% and 62%, respectively, compared to the same period last year. Operating profit is expected to exceed market consensus by 10%.

The increase in album sales was a key factor. Album sales for Stray Kids and ITZY reached 1.34 million and 340,000 copies, respectively, bringing total album sales to 1.93 million copies?the highest quarterly sales ever. Additionally, some album revenue from June was deferred to the third quarter, resulting in estimated album sales of 25.2 billion KRW, a 109% increase from the same period last year. Streaming revenue is also estimated to have increased by 50% year-on-year to 9.3 billion KRW. This underpins the record-high operating profit margin of 33.9%.

Special attention was drawn to Stray Kids. By selling over 1 million copies for the first time, they have strengthened the previously weak boy group segment. The initial sales of their second full-length album are estimated at 640,000 copies, five times the 130,000 copies sold for their first full-length album. Park Hak-kyung, a researcher at Korea Investment & Securities, stated, "Considering that the average initial sales for 'GOT7,' JYP Entertainment's former main boy group, were in the 200,000 range, Stray Kids' performance more than compensates for GOT7's departure. With album sales at a level that supports large-scale concerts, Stray Kids' revenue contribution is expected to expand further as the concert market normalizes next year."

TWICE (Source: JYP Entertainment official website screenshot)

The outlook for the fourth quarter is also bright. Active promotions are expected both domestically and internationally. Domestically, TWICE is set to make a comeback, while in Japan, Stray Kids' activities and NiziU's first physical album release (scheduled for November 24) are planned. TWICE's year-end concerts are also in the works, and NiziU's performances are anticipated in Japan, where with-COVID measures have been implemented. Additionally, a new band-type rookie group is scheduled for year-end debut, along with rookie girl and boy groups (Loud) debuting next year. Korea Investment & Securities maintained its 'Buy' rating and target price of 52,000 KRW for JYP Ent. The closing price on the previous day was 42,800 KRW.