Sales of 41.5 Billion KRW, Down 17% from Previous Quarter
Operating Loss Turns to 2 Billion KRW Deficit
"Impact of YG Investment Valuation Loss"
YG PLUS announced its preliminary results for the first quarter of this year.
On the 10th, YG PLUS disclosed that its consolidated financial statements showed sales of 41.46 billion KRW for the first quarter, a decrease of 25.33%. During the same period, operating profit and net profit turned to losses, recording operating losses of 2.032 billion KRW and net losses of 77 million KRW, respectively.
Regarding the operating loss, the company explained, "It was due to valuation losses of our subsidiary YG Investment and expenses related to platform development and new investments." The disappearance of the Blackpink world tour effect, which contributed to last year's strong performance, as well as the absence of activities from major artists under YG and HYBE, were also pointed out as causes of the poor quarterly results.
A YG PLUS representative emphasized, "The valuation loss of our subsidiary YG Investment is a temporary phenomenon caused by stock price fluctuations. Although it is a valuation loss based on the first quarter, it is a profit based on realized gains and losses."
They also added, "Our core businesses, music distribution and eco-friendly album printing through our subsidiary Forest Factory, are growing steadily, and the resumption of activities by major artists under YG and HYBE from the second quarter is a positive point."
YG PLUS, which is celebrating its 10th anniversary this year, is preparing to launch a new platform in addition to expanding its external popular IP-linked business.
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