YG Operating Profit Up 435% in 2020

  • YG + YGPlus Revenue in 2020:

    $230,500,000 + $96,757,000


    2020 Revenue: $327,257,000


    Articles mostly talking about increased album sales, expansion into Japan and YG's cosmetics line establishing a joint venture in China which will improve profits. YG-produced tv drama did well (YGStudioplex). And YGPlus distribution of BH albums, digital and merch for future growth

    .

    BLACKPINK's continued activity, TREASURE's expansion into Japan and BIGBANG's return to activity leads experts to maintain a BUY on YG and YGPlus stocks in 2021 where they expect YG's market cap to increase to 3-4 trillion Won.




    Sports trend

    Last year, YG grabbed and led black pink [General]

    Input 2021.02.25. 11:38 am

    Reporter Lee Sun-myeong
    [Sports Trend]


    ·YG Entertainment's Leading Group Black Pink·Treasure Point

    ·'Queen Iron Man' Success, Big Hit, Naver Collaboration, etc.



    0000719997_001_20210225114302566.jpg?type=w430Original view

    Black Pink (above) and Treasure were recognized as major groups leading YG Entertainment. Agency provided



    The gaze of experts looking at YG Entertainment was favorable. They highly appreciated the performance of the 4th quarter led by the group Black Pink, the return of major groups within the year, and collaboration with major platforms such as Naver and Big Hit.

    On the 25th, analyst Lee Ki-hoon of Hana Financial Investment said, “The profit potential is steadily rising through the suspension of the business in the red and the collaboration with Big Hit Entertainment.” He raised the expected operating profit for 2022 by 12% to KRW 64.9 billion.

    Analyst Ki-Hoon Lee gave a buy opinion with YG Entertainment's target price of 64,000 won. He said, “The artists' Weverse (Big Hit operating fan platform) is being launched in sequence, and in March, Treasures successfully entered Japan (album release), so we can check the profitability for the next 3 to 5 years."

    Ahn Jin-ah, an analyst at Ebest Investment & Securities, also hopefully saw the future of YG Entertainment. He said, “The sales of the fourth quarter of 2020 were 83.4 billion won and the operating profit of 5.4 billion won, up 27% and 436%, respectively, compared to last year.” “The global artist fandom led by the sales of Black Pink albums led to an increase in digital content demand.” The TVN drama'The Iron Man Empress', which ended in popularity, was also reflected in the production sales of YGStudioplex (5.9 billion won).

    The investment opinion was buy. Analyst Jin-ah Ahn said, “It is the only company that has signed a strategic collaboration with Big Hit Entertainment among the three major Korean entertainment companies, and it is possible to increase digital content sales targeting the global market through an online platform.” We maintained the target price at 63,000 won.

    Hanwha Investment & Securities analyst Ji In-ae also gave a buy opinion and maintained the target price at 62,000 won. He said, “The reason why offline performances were completely canceled, but there was little damage to annual sales last year was because of the explosive IP (intellectual property rights) performance. It is advantageous to prove.”

    He said, "The operating profit of 2021 is 40 billion won, and the expectation for the maximum earnings is still valid," he said. "As the activities of Black Pink and Treasure are strengthened and a return to the representative group is scheduled, both IP sales and gross profit are expected to grow rapidly."

    In addition, he said, “The key points of growth are the future MD production of YG Plus (PULS), improved performance of the music division, and creation of additional sales by entering Weverse through the combination of Naver and Big Hit Entertainment, the most powerful platform."

    Analyst Ji In-ae said, "All the trends surrounding the company, such as changes in the industry, relative market cap levels, artist awareness flow, performance direction, and platform combination, are very good."


    YG Entertainment, expects to transfer cosmetics business and black pink activity↑-KTB

    2021.02.25. 8:21 am

    Reporter Kim Seong-hoon


    In the fourth quarter, the company-wide earnings improved significantly with the release of Black Pink's regular album. The album sold a total of 1.67 million copies ( 1.3 million Black Pink , 260,000 Treasures, etc.) and recorded 17 billion won , the largest album sales ever . Digital content sales also increased 39.3 % from the same period last year to 13.7 billion won due to the Black Pink comeback and the increase in the number of YouTube subscribers .


    Production sales for this quarter recorded 5.9 billion won, which is related to the'Queen Iron Man' , (YG Produced tv drama) which was aired on tvN and recorded the highest viewership rating of 17.2 %. Although the profit contribution is low, it is explained that it is possible to produce a drama based on a solid production record in the future by having a production manpower (through YGStudioplex).


    https://n.news.naver.com/article/018/0004861431


    YGPlus recorded 6.1 billion Won in operating Profit in 2020

    https://cm.lawissue.co.kr/view…242039319115204ead0791_12


    Operating profit increased by 35.6%. ...since the 2nd half of last year artist activities resumed such as BLACKPINK and TREASURE. Major business growth such as music and MD were remarkable. Particularly in 4th Quarter

    sales of album and sound distribution and online concert sales increased significantly. Sales and MD distribution increased 40% and 125% QoQ.

    In addition YG's financial arm, YG Investments produced high profits.



    "YG shakes off deficit business, expectation of synergy with Weverse ↑"

    Input 2021.02.25. 7:44 am
      Revision 2021.02.25. 7:45 am

    Reporter Lee Min-woo



    [Asia Economy Reporter Lee Min-woo] YG Entertainment has cleared up the cosmetics business unit, which was in the red, with the establishment of a joint venture in China ( JV ). At the same time, it is expected that the profit potential will steadily rise through cooperation in distribution of domestic albums and music with Big Hit Entertainment.


    YG Entertainment recorded consolidated sales of 83.4 billion won and operating profit of 5.4 billion won in the fourth quarter of last year . Compared to the same period of the previous year , it rose 27.3 % and 435.6 %, respectively , but operating profit fell below the market forecast (consensus) of KRW6.8 billion. However , it recorded an operating profit of 10.7 billion won annually, an increase of 431 % year-on-year . The cosmetics business, the core deficit of YG Plus (annual operating deficit of KRW 3.6 billion), is a joint venture in China ( JV) This is because the trademark and goodwill were transferred through the establishment and reflected as a discontinued business. Through this , all divisions that had a combined deficit of 15 billion won, such as production, foods, and cosmetics , were cleared up.


    The potential is growing through collaboration with Big Hit. Annual operating profit of 3 billion ~ 4 billion won is expected to be added. Reflecting this , it is predicted that next year's operating profit will reach 64.9 billion won.

    YG Family

    E_E_fqdVcAcWSUK?format=jpg&name=large


    Unapologetic YG stan. I am a fan of all things YG and YG artists and have been for years.

    YG Ombudsman: I correct misinformation with facts and numbers, not opinions. Unless I know you I don't read responses to my posts, so don't quote me unless I've conversed with you in the past.

    Favorite YG Producers: Rovin, Millennium, Future Bounce

    Edited 2 times, last by Blue2012 ().

  • ..Not saying I know anything about stock, but Big Bang making the right moves will also make it go up for sure.

    That's one of the main reasons why experts think YG's market cap will triple or quadruple in 2021.


    BB was originally supposed to make their comeback last year with Coachella being their first stage.

    YG Family

    E_E_fqdVcAcWSUK?format=jpg&name=large


    Unapologetic YG stan. I am a fan of all things YG and YG artists and have been for years.

    YG Ombudsman: I correct misinformation with facts and numbers, not opinions. Unless I know you I don't read responses to my posts, so don't quote me unless I've conversed with you in the past.

    Favorite YG Producers: Rovin, Millennium, Future Bounce

  • Blue2012

    Changed the title of the thread from “YG Operating Profit Up 431% in 2020” to “YG Operating Profit Up 435% in 2020”.
  • Added a better, more comprehensive article to OP.

    YG Family

    E_E_fqdVcAcWSUK?format=jpg&name=large


    Unapologetic YG stan. I am a fan of all things YG and YG artists and have been for years.

    YG Ombudsman: I correct misinformation with facts and numbers, not opinions. Unless I know you I don't read responses to my posts, so don't quote me unless I've conversed with you in the past.

    Favorite YG Producers: Rovin, Millennium, Future Bounce

  • They stay hyping up BB return when album sales were never BB Forte lol


    Their Forte is touring which won't be happening in 2021


    I actually can see limited concerts in 2nd Q and return to full arenas in the summer. It's already being talked about in the US. Venues are already booking.

    The entertainment agencies in Korea, YG, SM, CJ etc. have already been in talks with the government.


    Anyway, I think that's why YG, BH and Naver are building a venue and platform for online concerts. It may be what we're headed pandemic or not. Overhead is much more inexpensive.


    In the meantime YG still has endorsements from GD in China and Nike etc.

    YG Family

    E_E_fqdVcAcWSUK?format=jpg&name=large


    Unapologetic YG stan. I am a fan of all things YG and YG artists and have been for years.

    YG Ombudsman: I correct misinformation with facts and numbers, not opinions. Unless I know you I don't read responses to my posts, so don't quote me unless I've conversed with you in the past.

    Favorite YG Producers: Rovin, Millennium, Future Bounce

  • BP will continue to carry this company :cursing:

    BLACKPINK is a main driver yes, but as stated in the article YG has several successes and revenue streams.

    The music label is one part of YGE.


    It didn't even mention YN Culture & Space. YG and Naver's new real estate development company.

    YG Family

    E_E_fqdVcAcWSUK?format=jpg&name=large


    Unapologetic YG stan. I am a fan of all things YG and YG artists and have been for years.

    YG Ombudsman: I correct misinformation with facts and numbers, not opinions. Unless I know you I don't read responses to my posts, so don't quote me unless I've conversed with you in the past.

    Favorite YG Producers: Rovin, Millennium, Future Bounce

  • I will miss moonshot. I love one of their lippies.

    Moonshot isn't going anywhere. They've just found a new partner that will take on more of the load. They have a luctative distribution contract they signed in China.

    YG Family

    E_E_fqdVcAcWSUK?format=jpg&name=large


    Unapologetic YG stan. I am a fan of all things YG and YG artists and have been for years.

    YG Ombudsman: I correct misinformation with facts and numbers, not opinions. Unless I know you I don't read responses to my posts, so don't quote me unless I've conversed with you in the past.

    Favorite YG Producers: Rovin, Millennium, Future Bounce

  • Zero chance arena concerts happen this summer


    Earliest will be Q4 2021 & YG won't announce a BP or BB tour till like December for early 2022


    Alsp BB will have to prove they still can pull numbers, after all alot has happened to the group, I doubt they will be able to pull MADE era numbers again even in Japan

  • Zero chance arena concerts happen this summer


    Alsp BB will have to prove they still can pull numbers, after all alot has happened to the group, I doubt they will be able to pull MADE era numbers again even in Japan


    BIGBANG could announce a Japan Dome tour tomorrow and it would sell out in seconds.

    YG Family

    E_E_fqdVcAcWSUK?format=jpg&name=large


    Unapologetic YG stan. I am a fan of all things YG and YG artists and have been for years.

    YG Ombudsman: I correct misinformation with facts and numbers, not opinions. Unless I know you I don't read responses to my posts, so don't quote me unless I've conversed with you in the past.

    Favorite YG Producers: Rovin, Millennium, Future Bounce

  • expansion into China is also a big factor.

    YG Family

    E_E_fqdVcAcWSUK?format=jpg&name=large


    Unapologetic YG stan. I am a fan of all things YG and YG artists and have been for years.

    YG Ombudsman: I correct misinformation with facts and numbers, not opinions. Unless I know you I don't read responses to my posts, so don't quote me unless I've conversed with you in the past.

    Favorite YG Producers: Rovin, Millennium, Future Bounce

  • The new YG/Yaoxing Culture boy group should launch in China some time soon too. 2 of the trainees are on Youth With You currently.

    YG Family

    E_E_fqdVcAcWSUK?format=jpg&name=large


    Unapologetic YG stan. I am a fan of all things YG and YG artists and have been for years.

    YG Ombudsman: I correct misinformation with facts and numbers, not opinions. Unless I know you I don't read responses to my posts, so don't quote me unless I've conversed with you in the past.

    Favorite YG Producers: Rovin, Millennium, Future Bounce

  • Zero chance arena concerts happen this summer


    Earliest will be Q4 2021 & YG won't announce a BP or BB tour till like December for early 2022


    Alsp BB will have to prove they still can pull numbers, after all alot has happened to the group, I doubt they will be able to pull MADE era numbers again even in Japan

    You clearly dont know bb

  • We will see lol

    I have no doubt. They are still consistently the #1 most searched artists on Melon and they haven't done anything in 4 years. Their MVs are still some of the most watched every month and they haven't released one in 4 years.


    GD has one of the most lucrative endorsement deals for a Korean in China. And his Nike events brought Korea to a stand still where even celebrities were begging to take pics and bragging about their GD Nikes.


    If you follow Twitter accounts like YG Charts Global, you can see the numbers they consistently pull everyday. Yet they haven't made a peep since 2016.

    They breathe and the media is writing a million articles.


    They'll pull the numbers once they comeback. Financial experts are even predicting it. Part of the reason is their fandom aren't like the regular fickle Kpop fandoms. They've survived A LOT.


    Also, I understand that a lot of new ifans are new to Kpop since 2016...basically when BB went on hiatus. I almost feel sorry for them. They've never experienced a BB comeback. They don't know what will hit them lol. Their comebacks are more like events than a regular comeback. It shakes the industry.

    You really can't compare them to anyone in the industry.


    Kpop fans forget easily. If you're not coming back every month they think you're "old news" or "lost it." Which proved to be a fatal mistake when they said it about BLACKPINK in 2018 and again in 2019. And BLACKPINK proved them wrong and got stronger each time.


    Anyway, many of their records still stand including touring numbers, which speaks volumes.


    Their first comeback I predict will be the biggest that Kpop has ever seen.

    YG Family

    E_E_fqdVcAcWSUK?format=jpg&name=large


    Unapologetic YG stan. I am a fan of all things YG and YG artists and have been for years.

    YG Ombudsman: I correct misinformation with facts and numbers, not opinions. Unless I know you I don't read responses to my posts, so don't quote me unless I've conversed with you in the past.

    Favorite YG Producers: Rovin, Millennium, Future Bounce

    Edited once, last by Blue2012 ().

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