Cube Entertainment Reports 41% Increase in Q1 Operating Profit Year-on-Year

Cube Entertainment announced on the 15th that its separate financial statements recorded sales of approximately 12.7 billion KRW and operating profit of about 1.2 billion KRW. Operating profit increased by about 41% compared to the same period last year, while sales decreased by about 3% during the same period. On a consolidated basis, sales amounted to 24.3 billion KRW, and operating profit was about 900 million KRW.

Cube Entertainment stated, “We are focusing internally on the fact that these results were achieved without any artist comebacks. Despite no album releases in the first quarter, the popularity of (G)I-DLE, which caused a sensation last year, has continued steadily this year. Compared to the same period last year when all major artists made comebacks, all revenue items in the entertainment sector excluding album sales showed an increase. In particular, advertising revenue increased sharply by more than 190% compared to the same period last year. Additionally, with the full resumption of face-to-face performances and overseas activities this year, event revenue also increased by 350% compared to the same period last year, which is more than double the cumulative event revenue for the first half of last year,” they explained.

They continued, “In the second quarter, we expect the entertainment sector’s performance to soar as major artists make their comebacks. On the 2nd, BTOB successfully made a comeback with their 12th mini-album 'Wind And Wish,' achieving good results on music charts. On the 15th, (G)I-DLE is scheduled to make a comeback with their 6th mini-album ’I FEEL.’ Notably, (G)I-DLE’s new album has recorded pre-orders of 1.1 million copies, the highest in their history, garnering great expectations from fans worldwide. Furthermore, starting June 17 in Seoul, (G)I-DLE’s second world tour is planned. Considering the expanded global fandom compared to last year, the scale of seats per show and the number of performances per city will be increased to ensure sufficient leverage,” they said.

Meanwhile, a Cube Entertainment official stated, “Since the second half of last year, losses have occurred in the cosmetics distribution business of our Japanese subsidiary due to increased facility investment costs from expanding the number of offline stores in Japan and increased advertising expenses for new product marketing. As a result, our consolidated financial performance also declined compared to the same period last year. However, we expect the effects of these facility investments and advertising expenses to appear after the second quarter, so we are optimistic about the future performance of the cosmetics distribution business segment,” they said.