YG PLUS Reports Q2 Operating Profit Up 240% Year-on-Year, an Earnings Surprise

Sales of 58.5 Billion KRW, Operating Profit of 8.4 Billion KRW
Operating Profit Increased by 240% Compared to Last Year
Number 1 Album Market Share in the First Half of This Year

YG PLUS, a subsidiary of YG Entertainment specializing in entertainment infrastructure and IP business, announced on the 10th that its sales for the second quarter of this year reached 58.5 billion KRW, with an operating profit of 8.4 billion KRW. Compared to the same period last year, sales increased by 80% and operating profit rose by 240%. The operating profit margin also increased by 6.8 percentage points year-on-year to 14.4%.

The combined sales for the first and second quarters totaled 114 billion KRW, with an operating profit of 17.6 billion KRW. These first-half results alone achieved over 80% of last year’s total sales and more than 170% of total operating profit. YG PLUS explained the factors behind the performance growth as ▲expanded album sales by artists under YG and HYBE ▲continued effects of BLACKPINK’s world tour ▲rapid growth of subsidiary Forest Factory ▲strong financial investment performance ▲full-scale launch of secondary IP business. In fact, YG PLUS recorded a 41.5% market share in album distribution in the first half of this year (based on Circle Chart), ranking first in the industry.

Expectations are high for third-quarter results as well. Recently, TREASURE made a comeback with their second full-length album ‘REBOOT.’ Rookie group BabyMonster is preparing for their debut. Moreover, subsidiary Forest Factory, which operates the album printing business, is growing rapidly, and sales in core businesses such as music distribution and MD continue to steadily increase. Choi Sung-joon, CEO of YG PLUS, said, “As a result of relentless investment in comprehensive music infrastructure, we were able to achieve the best first-half performance alongside the growth of K-pop,” adding, “We will contribute to the sustainable growth of the entertainment industry by establishing a system of mutual growth with our partners.”