HYBE had a great 2021 despite fewer concerts

Boy band BTS [BIG HIT MUSIC]

Entertainment company HYBE reported a consensus-beating 62 percent surge in net last year, thanks to sales of merchandise and content that made up for the pandemic's shutting down of concerts.

HYBE is home to K-pop bands BTS, Tomorrow X Together and Seventeen.

HYBE’s 2021 net was 141 billion won ($118 million), higher than the 135.4-billion-won analyst expectation compiled by FnGuide and 62 percent higher than a year earlier.

The increase was led by record revenue of 1.26 trillion won, higher than a 1.19 trillion won consensus and 58 percent higher than 2020.

Operating profit increased by 31 percent to 190 billion won, as expected by analysts.

“The record-high revenue was possible because we diversified our business model before the Covid-19 pandemic began,” the company said in a press release.

The company cited businesses where its artists take indirect part — merchandise and content related to the artists — as the main growth factor that allowed them to grow without in-person events.

Concerts used to be the main business of entertainment companies. In 2019 before the pandemic, 32 percent of HYBE’s revenue was from concerts.

The company will further diversify its businesses into digital projects this year.

HYBE will start publishing games this year and also launch a new online fan community by combining its Weverse service and Naver’s V-Live.

BY YOON SO-YEON [yoon.soyeon@joongang.co.kr]