[Click eStock] Cube Entertainment, (G)I-DLE Solidifies Trend with ‘Nxde’... Album Sales Up

Shinhan Financial Investment Report

[Asia Economy Reporter Minji Lee] Shinhan Financial Investment stated on the 2nd that Cube Entertainment is expected to see growth in album and digital music sales due to the success of (G)I-DLE.

(G)I-DLE's fifth mini album ‘I LOVE’ recorded the 6th highest first-week sales among female idols. Approaching 700,000 copies in the first week, they have established themselves as a leading girl group alongside BLACKPINK, aespa, and IVE. This album showed over 300% growth compared to their representative albums DUMDi DUMDi (90,000 first-week sales) and TOMBOY (180,000 first-week sales).

Researcher Byunghwa Lee said, “The title track ‘Nxde’ topped major music charts including Melon within a day of the album’s release, and the fandom is rapidly expanding,” adding, “Next year, the debut of new boy and girl groups is expected to expand Cube Entertainment’s overall artist lineup.”

This year’s sales are estimated at 115.7 billion KRW, with operating profit at 6.8 billion KRW, representing growth of 60.8% and 476.2% respectively compared to the previous year. This is due to expected high sales growth in the album and digital music sectors. Since being acquired by VT GMP in 2020, the Japanese cosmetics distribution rights have been recognized as product sales. With the VT Cosmetic brand successfully establishing itself in the Japanese market, product sales are expected to exceed 50 billion KRW.

Next year’s operating profit is expected to grow 140.8% year-on-year to 16.4 billion KRW. Researcher Byunghwa Lee said, “We expect increased revenue contributions from albums, digital music, and offline performances by key artists including (G)I-DLE, as well as expansion in the Japanese cosmetics sector,” adding, “The reflection of blockchain sales such as music metaverse and concrete results from AnyCube will also lead to improved profitability.”