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Report: Big Bang exit won’t hurt YG

Published: 12 Jul. 2016, 20:48

The departure of rapper T.O.P from K-pop boy group Big Bang for military service next year is not likely to affect the profits of his agency, YG Entertainment, in the third quarter according to a report from Hana Financial Group.

“The rapper’s absence will be covered by the group’s leader, G-Dragon, and Taeyang,” the report released on Tuesday said.

T.O.P announced last month that he would leave the group temporarily to serve out his mandatory military duty next year.

According to Hana, YG Entertainment’s revenue for the second quarter of this year is expected to be 64.2 billion won ($56 million), up 41 percent from the previous year.

Hana estimates the entertainment company’s operating profit grew 62 percent to hit 8.2 billion won.

“Big Bang’s Japan tour attracted more than 350,000 fans, and more than 140,000 people attended the concert in Japan this year for YG’s other boy band, iKon,” the report said.

With many more events lined up in Japan later this year, a strengthened yen after the so-called Brexit is expected to help the entertainment company. The yen’s value against the Korean won rose 16 percent year-on-year as of the end of the second quarter, and currently, 100 yen is being traded at around the 1,130 won level, 20 percent higher compared to a year ago.

This will only help YG Entertainment in the third quarter, the report said.

The revenue of YG PLUS, an advertising arm of YG, is also expected to rise 112 percent year on year to record 16.9 billion won. Big Bang member G-Dragon’s cologne product is also estimated to have brought in around 3 billion won in revenue during the first half of this year.

The results of Big Bang’s recent fan meetings in Japan and China will be included in the third-quarter data. Big Bang also plans to hold various concerts and release a new album in August to celebrate the 10th anniversary of their debut.

Other YG performers including Bobby and Song Min-ho also plan to hold concerts in the third quarter.

Even with T.O.P gone, YG said Big Bang will continue to perform both individually and as a group.

BY KIM YOUNG-NAM [[email protected]]