'The Power of BLACKPINK' YG's Q1 Operating Profit Soars 497%... 'Earnings Surprise'

108% Sales Growth Compared to Q1 2022
Operating Profit Increased 497% to 36.4 Billion Won
Blackpink and Treasure Concert Revenues Lead the Surge

YG Entertainment (YG) announced on the 11th that its consolidated preliminary earnings for the first quarter amounted to 157.5 billion KRW in sales and 36.4 billion KRW in operating profit. During the same period last year, sales were 75.5 billion KRW and operating profit was 6 billion KRW. This represents increases of 108% and 497%, respectively.

This is an 'earnings surprise' that far exceeded market expectations compiled by financial information firm FnGuide. The initial market forecast was 123.1 billion KRW in sales and 16.3 billion KRW in operating profit.

The strong performance was driven by ‘BLACKPINK’. Concert revenue, which was zero during the same period last year, appears to have increased significantly. BLACKPINK held 14 ‘world tour’ concerts in the first quarter. TREASURE also completed 10 concert schedules. BLACKPINK’s Jisoo set a record for first-week sales by a female solo artist with 1.17 million copies sold. Some deferred sponsorship fees (approximately 2 to 3 billion KRW) were also reflected.

The BLACKPINK world tour is still ongoing. Even the scheduled performances of YG artists through the third quarter exceed the total number of concerts held last year. Considering the expansion of concert scale and ticket price increases, revenue from performances and merchandise is expected to rise significantly. Attention is also focused on the initial success of the upcoming girl group ‘Baby Monster’.