Record-Breaking Performance with Album and Concert Revenue Driving Growth
Top 3 Entertainment Companies Achieve Highest Q1 Earnings Ever
SM Posts Operating Profit Decline, Reversal Expected in Q2
On the 15th, with JYP Entertainment's announcement, the first-quarter earnings of the four major entertainment companies were all released. The ever-growing popularity of K-pop was directly reflected. It was truly a 'record-breaking boom.' Record-breaking album sales and the resumption of concerts brought big smiles. HYBE, JYP, and YG Entertainment posted their highest-ever first-quarter earnings. SM, the only company to experience 'negative growth,' is considered to have performed well given the management dispute.
HYBE Leads in Albums, YG in Concerts
JYP Entertainment announced on the 15th that its consolidated first-quarter earnings were 118 billion KRW in sales and 42 billion KRW in operating profit. In the same period last year, sales were 67.7 billion KRW and operating profit was 19.1 billion KRW. This represents increases of 76% and 119%, respectively. True to its focus on its core business, the operating profit margin reached 35%. Looking in detail, album and digital music sales (51.9 billion KRW) grew 54.2% compared to the same period last year, concert sales (6.7 billion KRW) grew 105.7%, and other revenues such as merchandise (51.9 billion KRW) jumped 143%. They sold 3.66 million albums, including 1.78 million by TWICE, 930,000 by Stray Kids, and 680,000 by NMIXX.
YG was the company that delivered a 'surprise performance.' Its first-quarter sales were 157.5 billion KRW, and operating profit was 36.4 billion KRW. Compared to the same period last year, these figures rose by 108% and 497%, respectively. This was an 'earnings surprise' that far exceeded market expectations (sales of 123.1 billion KRW and operating profit of 16.3 billion KRW). BLACKPINK, considered a 'mega IP,' led the earnings by holding 14 world tour concerts in the first quarter alone. Some deferred income from last year's concerts was also reflected in the first-quarter results. TREASURE supported this by performing 10 concerts. As a result, concert revenue, which was zero in the first quarter last year, increased significantly. BLACKPINK's Jisoo set a record for the highest first-week sales by a female solo artist (1.17 million copies), driving album sales.
HYBE, the industry leader, recorded first-quarter sales of 410.6 billion KRW and operating profit of 52.5 billion KRW. These represent increases of 44.1% and 41.7%, respectively, compared to the same period last year. This strong performance was achieved despite BTS members partially enlisting in the military, preventing full-group activities. It is attributed to the 'multi-label' system, where various lineups of artists were active. They sold 9.11 million albums in the first quarter alone. Notable contributions came from BTS's Jimin (first-week sales of 1.45 million), TOMORROW X TOGETHER (3.14 million), NewJeans (1.3 million), and SEVENTEEN (1.27 million).
SM was the only one among the four major entertainment companies to experience negative growth. Its first-quarter sales were 203.9 billion KRW, and operating profit was 18.3 billion KRW. In the same period last year, sales were 169.4 billion KRW, and operating profit was 19.2 billion KRW. While sales increased by 20%, operating profit decreased by 5%. SM had the lowest album sales in the past eight quarters due to the absence of major idol comebacks, selling 3.36 million albums. However, considering that 4.9 billion KRW was spent on the management dispute, this performance is regarded as relatively good.
The Second Quarter Will Be Even Hotter, SM Also Expected to Turn Around
The first quarter is generally considered the 'off-season' in the entertainment industry. It is typically the period when artists prepare for their next album and comeback. Therefore, quarterly results tend to be lowest in the first quarter and gradually increase toward the fourth quarter. Especially unlike last year, the revival of the concert market raises expectations. The boom is expected to continue into the second quarter.
HYBE has abundant momentum for the second quarter. BTS's SUGA released a solo album last month and simultaneously embarked on a world tour. SEVENTEEN set a record for the highest first-week sales ever by selling 4.55 million copies of their mini-album in the same month. LE SSERAFIM made a comeback on the 1st, and ENHYPEN and the new group BOY NEXT DOOR are also scheduled to debut this month.
YG, predicted to hold the number one share of K-pop concerts in the first half of the year, will continue its upward trend. BLACKPINK's second-quarter world tour schedule includes 16 shows, more than in the first quarter. TREASURE also has seven concerts scheduled. JYP will also have its main IPs, Stray Kids and TWICE, actively promoting. TWICE has 11 world tour concerts scheduled during the second quarter, and Stray Kids will make a comeback next month.
SM, which struggled in the first quarter, aims for a 'turnaround' in the second quarter. aespa, EXO, and NCT DREAM will make consecutive comebacks. Especially EXO's performance as a full group comeback is expected to determine the results. A record-breaking quarterly album sales figure of 7.5 million copies is also anticipated. The combined audience for concerts and fan meetings is projected to reach 890,000.
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