[Click eStock] "HYBE, Focusing on Direction Over Speed"

Yuanta Securities analyzed on the 9th that HYBE's first-quarter earnings this year likely fell short of previous estimates.

Researcher Lee Hwan-wook of Yuanta Securities explained, "We estimate that HYBE achieved sales of 442.8 billion KRW and operating profit of 21.4 billion KRW in the first quarter," adding, "This represents an increase of 22.7% and 48.9%, respectively, compared to the same period last year."

However, he noted, "The previous estimates were sales of 480.7 billion KRW and operating profit of 31.1 billion KRW," adding, "Due to a decline in the proportion of album sales and an overall rise in fixed costs, profitability improvement was somewhat limited."

Lee estimated, "First-quarter album sales were approximately 2.8 million copies, including 700,000 copies of LE SSERAFIM's new release, 1.15 million copies of SEVENTEEN's (two unit albums) new releases, and 950,000 copies of other back catalogues," and analyzed, "Combined album sales revenue was 120.7 billion KRW, down 16.8% year-on-year."

Additionally, he explained, "The total concert attendance was about 920,000 people, including BTS J-Hope's 13 shows, SEVENTEEN's 8 shows, TXT's 9 shows, Boy Next Door's 15 shows, and ENHYPEN's 3 shows," adding, "This represents a 165.1% increase compared to the same period last year."

He emphasized, "Although the current quarterly profit improvement trend is somewhat disappointing, the visibility of significant mid- to long-term earnings improvement is very high," and added, "While BTS's global recognition peak may have passed, considering the rise in concert ticket prices and the expanded global tour market, next year's earnings contribution will be the highest ever."