HYBE CEO reports lower-than-expected Q3 operating profit, vows to support NewJeans

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HYBE CEO reports lower-than-expected Q3 operating profit, vows to support NewJeans

Published: 05 Nov. 2024, 18:01

HYBE headquarters in Yongsan District, central Seoul [YONHAP]

HYBE CEO Lee Jae-sang said the company would focus on its "core values" after reporting a lower-than-expected operating profit for this year's third quarter in a conference call with investors on Tuesday.

“Despite the various circumstances surrounding the company, HYBE's employees and artists have strived to achieve the best possible results,” the CEO said.

“We will continue to focus on our core values and diligently pursue our business.”

“HYBE will continue to provide full support for the ongoing growth of NewJeans," he added.

HYBE CEO Lee Jae-sang [HYBE]

HYBE reported an operating profit of 54.2 billion won ($39 million) in the third quarter of 2024, down 25.4 percent compared to the same period last year. The figure came in lower than the 56.5 billion won amount suggested by Fnguide.

Revenue came in at 527.8 billion won for the third quarter, down 1.9 percent compared to the year prior. Net profit for the third quarter plunged 98.6 percent on year to 1.4 billion won.

Revenue generated by artists' direct participation, comprising album sales, concerts, commercials and media appearances, accounted for 322.98 billion won, or 61.19 percent, of the quarter's revenue.

Revenue from indirect participation, which includes merchandise and licensing, came in at 204.87 billion, making up 38.82 percent of revenue.

“Although the releases of albums by HYBE artists were slightly delayed due to the Olympics, indirect revenue from intellectual-property-related businesses experienced a significant surge, driving overall performance,” HYBE said in a press release.

“Cumulative sales for the first three quarters of this year exceeded 1.5 trillion won. This has turned on the green light for the company to achieve its annual revenue target of 2 trillion won for the second consecutive year.”

BTS member Jin [BIG HIT MUSIC]

In the fourth quarter, various artists from HYBE, including BTS's Jin, will release their songs and promote their music by running events, as well as holding showcases and concerts.

BTS's Jin will release his first solo album "Happy" on Nov. 15. He will also hold a special fan showcase dubbed "Jin 'Happy' Special Stage” at Jangchung Arena in central Seoul on Nov. 16 and 17 to celebrate the album’s release.

Seventeen is currently on its "Right Here" world tour, which began in Goyang, Gyeonggi, on Oct. 12. The group’s 12th EP, "Spill The Feels," released in October, sold 3.16 million copies in its first week.

Tomorrow X Together will be holding encore concerts for its third world tour, "Act: Promise," and continuing promotions for its recently released seventh EP, "The Star Chapter: Sanctuary."

Girl group ILLIT [NEWS1]

Enhypen's second full-length album, "Romance: Untold," surpassed 2 million copies sold. It will release a repackaged version, "Romance: Untold -daydream-," on Nov. 11.

Le Sserafim will release a Japanese single in December. The group’s title track "Crazy" from its fourth EP ranked on the Billboard Hot 100 for two consecutive weeks in September.

BoyNextDoor's debut EP, "19.99," sold over a million copies in September. The group will embark on its first standalone tour, "Knock on Vol.1," in December.

ILLIT, a relatively new group that has already surpassed 1 million album sales in just seven months since its debut, will continue its momentum with the group’s second EP, "I'll Like You," released last month.

BY YOON SEUNG-JIN, YOON SO-YEON [[email protected]]