[Click eStock] YG Entertainment and YG Plus, Stock Prices Rise Together... Expectation of Increased Revenue from Owned IP

On the 2nd, YG Entertainment and YG PLUS are both rising in the stock market. It is expected that the trend of improving performance will continue due to increased concert revenue, album sales, and the expansion of listeners for owned IP (artist music tracks).

Yonhap News

As of 2:10 PM on the same day, YG Entertainment is trading at 50,000 KRW, up 4.71% from last week's closing price. It hit a low of 20,950 KRW in September and has been on an upward trend for three months.

Yuanta Securities recently forecasted in a report that YG Entertainment will achieve sales of 498.1 billion KRW and an operating profit of 52.6 billion KRW next year. Sales are expected to increase by 40.6% compared to this year, and operating profit is projected to turn from a loss to a profit. This reflects the increase in global concert attendance for BLACKPINK, the rise in average ticket price (ATP), and strong sales of tour merchandise.

The subsidiary YG PLUS is currently trading at 5,100 KRW, up 5.15%. Until mid-October, YG PLUS’s stock price was trading in the 2,000 KRW range, but it rose to 7,130 KRW within six days as BLACKPINK’s Ros?’s song “Apartment” gained popularity.

After a recent price correction, the stock price is rebounding again as Ros?’s new song release and the rising popularity of other artists such as Baby Monster have boosted interest. YG PLUS is a company that distributes music tracks of artists under YG Entertainment and The Black Label. Ros? is affiliated with The Black Label, a YG Entertainment affiliate.

According to industry sources, the combined monthly listeners on Spotify for IP owned by YG Entertainment amount to 28.43 million, a 17.9% increase compared to the end of November last year. While BLACKPINK and TREASURE’s listeners decreased by 18.7% and 32.2% respectively, the rapid global expansion of the recently debuted Baby Monster contributed to the overall increase in listeners.