HYBE announces Q3 earnings - net profit down 98.6%

    I mean we know exactly where that money is going and having BTS back isn't going to help. They are wasting huge amounts of money with that game company stupidness, fighting with MHJ by buying off the media and trying to hide their mess.


    Advertising expenses Q1 were 800k won, Q2 were 1million won

    Entertainment expenses went from Q1 900k to 4.6 million Q2


    Advertising expense increased by 37.26% compared to last year

    Entertainment expense increased by 276.45% compared to last year

    A bit strange the net profit decreased that much, must be some kind of financial cost/interest costs but you would think they would bath in money and don't have to have that much of loans.

    Entertainment agency Hive announced its third quarter performance. Both operating profit and net profit fell sharply, showing a downward trend.

    Hive announced on the 5th that its consolidated operating profit for the third quarter of this year was 54.2 billion won, down 25.4% from the same period last year. Sales for the same period fell 1.9% to 527.8 billion won.

    Net profit, which saw the biggest decline, fell 98.6% to 1.4 billion won.

    Direct participation sales were tallied at 323 billion won, down 18.8% from the same period last year, while indirect participation sales increased 31.8% to 204.9 billion won, showing a good performance. Direct

    participation sales include albums, performances, advertising and appearance fees. In particular, album and music sales fell 18.8% and performance sales fell 14.8%.

    In this regard, HYBE stated, “Although there was a global event called the Olympics, we maintained solid performance with the growth of ENHYPEN and BOYNEXTDOOR’s album sales, NewJeans’ Japanese debut single becoming a million-seller, and BTS Jimin and Le Seraphim’s digital sales.” Indirect participation sales, including MD and licensing, content, and fan club sales, increased by 32%. Of these, content sales showed a 64% increase. HYBE predicted that direct participation sales in the fourth quarter will be driven by the release of BTS member Jin’s solo album on the 15th, the start of SEVENTEEN’s world tour with triple million sellers, TXT’s encore concert and release of their 7th mini album, ENHYPEN’s repackaged album release on the 11th, Le Seraphim’s Japanese single release in December, BOYNEXTDOOR’s first solo concert tour in December, and Illit’s activities with 1 million cumulative album sales. In addition, Hive is expected to achieve 2 trillion won in sales for the second consecutive year since last year, with accumulated sales exceeding 1.5 trillion won in the third quarter. However, Hive is still suffering from negative factors such as the dispute with former CEO Min Hee-jin of Adore, and the internal fandom boycott movement due to the leak of the Music Industry Report, a report for executives. In particular, the Music Industry Report blatantly contained sensitive criticism of idols from other entertainment agencies, which directly damaged the corporate image, and the strong backlash from internal and external fandoms has led to actual movements such as the boycott movement and the National Assembly petition to cancel the Ministry of Employment and Labor's Top Enterprise status. In addition, in the midst of a vertical decline in net profit, the company opened the way for its own criticism by granting 12,174 shares of restricted stock (RSU) worth 3.6 billion won to 20 executives on the 22nd of last month. Kim Joo-young, CEO of Adore, who recently attended the state audit, received the largest amount, 2,141 shares worth approximately 420 million won. During the third quarter performance announcement conference call held that day, HYBE CEO Lee Jae-sang said, “Despite various situations surrounding the company, HYBE executives, employees, and artists did their best to achieve good results,” and “I would like to thank the shareholders who have trusted and supported us.” HYBE CFO Lee Kyung-joon said, “We are currently discussing with BTS members about (full group) promotions in 2026,” and “Of course, there will be significant sales if they make a comeback as a full group, but since it will also accompany the growth of other artists’ new businesses, I do not expect the sales ratio to be as high as in the past.”

    하이브, 악재 속 순이익 98% 하락···“내년 BTS 의존도 감소 기대”
    m.entertain.naver.com

  • AllKill VIP

    They will report all their profit went into new investments in the US and Latin America.

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