YG Entertainment reports first quarter operating loss of 7 billion won

  • YG Entertainment reports first quarter operating loss of 7 billion won


    YG Entertainment announced on the 10th that it recorded an operating loss of 7 billion won in the first quarter of this year. It turned into a deficit compared to the same period last year. During the same period, sales decreased by 44.5% to 87.3 billion won. Net profit for the period decreased by 98.7% to 400 million won.

    YG Entertainment announced that its performance was affected by the decline in the main business of YG Plus, its main subsidiary, due to the slowdown in the global economy and increased market volatility, and losses in the valuation of investment products by YG Investment. The increase in investment expenses for new singers preparing for launch, including the recently officially debuted girl group Baby Monster, and new IP also had an impact.


    A YG Entertainment official explained, “The initial investment in new talent is a short-term cost burden, but it is related to our future growth strategy.” He continued, “This first quarter performance includes new content development and marketing costs,” and added, “In the long term, we will strengthen the company’s competitiveness and pursue growth in various markets.”

    Currently, YG Entertainment is carrying out a project to discover and foster new talent in earnest with the goal of debuting one or more new groups within the year. In addition , global auditions are being conducted in cooperation with local entertainment companies such as Japan's AVEX .

    The market believes that the success of the promising talent Baby Monster, who debuted on the 1st of last month, will play a decisive role in YG Entertainment's return to profit. Baby Monster's mini album is performing well, selling more than 400,000 copies in just one week. Seongman Yoo, a researcher at Leading Investment & Securities, analyzed, “ With the full schedule of Blackpink, YG Entertainment’s flagship group, uncertain this year, the release of Baby Monster’s album and its success will play an important role in performance.”



    YG엔터, 1분기 영업손실 70억원…“베이비몬스터 데뷔 등 투자”
    연내 블랙핑크 활동 불확실 유망주 베이비몬스터 흥행여부, 상반기 실적 개선 관건 YG엔터테인먼트가 올해 1분기 영업손실 70억원을 기록했다고 10일 공시했다. 전년 동기 대비 적자전환했다. 같은 기간 매출은 873억
    n.news.naver.com

  • The ads is adding

    you shouldn't be talking considering all resources to put it that way the group you stan benefitted from. I really don't get this comment lol you draw the line with ads that with it's not a big deal and easy to see the real;/fake views baemon still has more than most newer groups or even older ones

    .................



    anyways I'm not surprised about this results YG really needs blackpink now it's make sense why they are getting rid of YGX academy it doesn't give much profits

  • I mean they lost all the bp members

    Bp members seems to busy to do a group cb soon


    They no longer have big bang


    Winner isn't as popular that they were


    Ikon left


    I don't remember their latest BG name which isn't a good sign about their popularity


    And BM debut have been underwhelming Compare to previous YG gg


    YG is currently like a midtier company and not as a big 4 so i'm not surprise of this loss

    ✩We Born with the X-Gene✩

  • The only relevant group YG had was BP and with them soft disbanded and the fact that YG keep trying to buy fake success for their irrelevant Babymonster flop I'm not surprised they didn't make any money.


    I mean where are they going to get it from without BP? Money sinks like BM and Treasure lol?

  • The only relevant group YG had was BP and with them soft disbanded and the fact that YG keep trying to buy fake success for their irrelevant Babymonster flop I'm not surprised they didn't make any money.


    I mean where are they going to get it from without BP? Money sinks like BM and Treasure lol?

    they haven't disbanded as group though they probably will have a come back next year since now the girls are working on their invidual projects now, but it's obvious that their solo activities /gigs were profitable and the fact that aren't under YG for it has affected YG's financially


    don't worry about baemon they are gonna start their fanmeet tour soon that will generate some profits. Ads aren't nothing special be serious lol doesn't JYP do the same for some groups?

  • I think their business will just go down for bit because this is huge loss of money without any perticular controversy, they just don't have groups that earn them lot of money, bp was their only hope but idk their relationship with the members.

  • they haven't disbanded as group though they probably will have a come back next year since now the girls are working on their invidual projects now, but it's obvious that their solo activities /gigs were profitable and the fact that aren't under YG for it has affected YG's financially


    don't worry about baemon they are gonna start their fanmeet tour soon that will generate some profits. Ads aren't nothing special be serious lol doesn't JYP do the same for some groups?

    That's why i said soft disbanded. It's going to be like Got7, Mamamoo and SNSD going forward where group activities take a back seat to the members individual careers which they control and profit from, not YG.


    BlackPink aren't and never will be a reliable source of income for YG entertainment again so the have to rely on their current line up and lets be real people like AKMU and sub labels like TBL with Somi and ZionT just aren't going to bring in the big bucks with their lack of sales and touring ability so the full weight of the company's bottom line low key rests on Treasure and BabyMonster....not great when you consider Treasure is, at best, a lower mid table group in today's market and BM's launch has been heavy investment and low return thus far with them seemingly being miles behind their contemporaries in all areas.


    YG were struggling to profit even when they had BP, Winner, Ikon and on/off Big Bang comebacks over the last 5 years so them falling back into making loses was not avoidable after the contract fumble with BP.

  • This was going to happen with blackpink members not signing back. YG will make no money off bp solo gigs as they all left. A blackpink comeback is nowhere in sight. Maybe a release in 2025, maybe 2026,maybe never.

    Treasure really never got anywhere much.

    Babymonster is their best shot at the moment at a top group. Let's hope YG don't fumble them.

    Also lbr ads are not the reason even tho YG did use ridiculous amounts of it.

    ¯`*•.¸,¤°´✿.。.:* 𝓨𝓤𝓝𝓐 *.:。.✿`°¤,¸.•*´¯

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  • No wonder they kind of desperate in sheesh promo. Buying ads isn’t unusual. What’s unusual is the fortune they that they put in the ads for at least a month (most only 1-2 weekd at max). They gain so much views compared to ANY groups that even with a hit song. YG seems like putting all their bets on BM

    Horanghae:p



  • I'm not surprised. what albums did they release last quoter? One maybe two. DO they have any other forms of income? Besides their artist they still have to pay their other employees (lawyers, stylist, accountants) and overhead expenses (rent, taxes, utilities). They need to rethink their quality over quantity I believe to make it back to being profitable.

  • am I counting it well it's 5M USD?

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  • Not surprising. And would have been worse if they had to pay the BP members to keep their management schedule.


    They had to debut BM with all the shit it implies (ads/mediaplay, promotional material/styling for it, MV, performances on music shows and so on), then re-debut BM so it doubled the costs.


    And we are talking about YG here, they aren't good at spending money efficiently : anyone here remembers all the noise made about how Pink Venom was the most expensive BP MV yet only for everyone wondering where all the budget went? Building specific sets with props, weird cameras rigs and so on actually costs a lot of money.

  • BM debuted to a very strong predecessor. I hope they are not pressured in things they can't control. YG needs to push them and forget about dungeons every 2 to 3 years. If they do that, BM will never grow to earn them as much as any other Kpop group they've ever had.

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  • I'm not surprised. what albums did they release last quoter? One maybe two. DO they have any other forms of income? Besides their artist they still have to pay their other employees (lawyers, stylist, accountants) and overhead expenses (rent, taxes, utilities). They need to rethink their quality over quantity I believe to make it back to being profitable.

    zero releases in Q1. Besides residual income, they did release a bunch of Blackpink collab merch so that probably covered some of their expenses.

  • they seriously be saying the launch of BaeMon is where the money went?


    LMAO wtf the budget that BaeMon got was piss poor da fuck they on about

    Technically, that's not true, because they spend ENORMOUS money on Youtube ads. Even if just half of it true what we can see on Kpop Daisuki, it's a LOT of money!


    I read this online, and it's pretty accurate based on what I find after some Googling. And this just for YouTube.


  • Technically, that's not true, because they spend ENORMOUS money on Youtube ads. Even if just half of it true what we can see on Kpop Daisuki, it's a LOT of money!


    I read this online, and it's pretty accurate based on what I find after some Googling. And this just for YouTube.

    stop being stupid. YG spent $136M for sheesh MV is bullshit. Sheesh MV is 39 days old. So basically YG spent around $3.5M per day.


    Per ad view is only cost ~$0.15. That's a f*cking 23,000,000 ad views per day

    23,000,000 x 39 days = ~897,000,000 ad views and organic views are not yet counted there..


    Math is not mathing!

    As a digital marketer, I'm so impressed with your stupidity!

  • yg will have to do with bm

    promoting help their charting so they can do that again and touring will increase their fandom

    they are their only hope


    bp is no more, nobody cares for treasure, winner too old

    they putting all their money on them make sense, u gotta a lost a bit to win later

  • AKMU is still under YG

    AKMU are an irrelevant group financially as I pointed out.


    The only true money makers YG had was BP over the last few years.


    If AKMU is YGs main relevant group for the foreseeable future settle in for more losses on the books.

  • Says a NJ stan? lmfao.

    What ads are nj using? They are famous for their organic views


    and if you will mention spotify playlist your fav group is infamous for literally being besties with spotify higher ups so much they are comfortable hugging, going to concerts or riding same cars and going together to hotel parties

  • you shouldn't be talking considering all resources to put it that way the group you stan benefitted from. I really don't get this comment lol you draw the line with ads that with it's not a big deal and easy to see the real;/fake views baemon still has more than most newer groups or even older ones

    .................



    anyways I'm not surprised about this results YG really needs blackpink now it's make sense why they are getting rid of YGX academy it doesn't give much profits

    what resources exactly? you mean spotify that gave them billboard entrance? bc non international side

    worked out very well for them. Their songs went mega viral(tho it didn't need playlisting or youtube ads since nj don't use them. Korean side is the most organic), Korea loves them.

    For baemon it went meh. Esp for a yg group and bp successor. Even illit is outdoing them

    lmao

    so she can talk all she wants

  • well Q2 they have the sales from Baemon's album and Treasure starts their Asian tour in May. It's not much, but YG will probably pull in some profit for the quarter.

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