Highlights
- HYBE registers record topline growth in Q2, surpasses ₩1 trillion (~ $688.6M) benchmark as BTS returns.
- Operating profit climbed 159% year over year to ₩170.9 billion (~ $117M), exceeding analyst estimates as merchandise and live shows boosted margins.
- After staging 119 shows in the 1st half of the year, HYBE plans over 200 concerts for the 2nd half, aiming to surpass its historic 2025 touring performance.
HYBE Co. delivered record financial results in the second quarter of the year, reportedly making them the first K-pop agency to produce over ₩1 trillion (~ $688.6 million USD) in quarterly sales. The growth comes as their flagship act BTS makes a comeback, thus revitalizing their live touring and physical media consumption.
Revenue, for the three months ending on June 30, increased 105.5% year-over-year to ₩1.45T (~ $998M). Operating profit rose 159.3% to ₩170.9 billion (~ $117M), outpacing the ₩155B (~ $106M) analyst consensus compiled by Yonhap Infomax by 10.5%. Additionally, the company’s net profit surged 613% to ₩109.8B (~ $75.7M).
The Direct Revenue Boom Due to BTS
Artist direct involvement revenue, which consists of concerts, album sales, and commercial appearances, more than doubled to ₩1.04T (~ $717M), up 132% from the prior-year period. Concert revenue alone produced ₩647.7B (~ $44.7M), anchored by BTS’ ARIRANG World Tour. In May, the group grossed $127.8M across 12 shows, selling 641,000 tickets to become the highest-grossing monthly tour by a group in Billboard’s chart history. Physical album sales further added ₩326.8B (~ $22.6B), uplifted by vinyl picture disc re-releases of ARIRANG and million-seller releases from labelmates like Tomorrow X Together (TXT), ENHYPEN, and TWS.
Indirect Monetization and Margin Resilience
Operating expenses doubled year-over-year to nearly ₩1.3T (~ $899M) as production and touring costs surged. Despite the expense pressure, HYBE maintained an operating margin of 11.8%, backed by the growth in its high-margin indirect streams, like merchandise, intellectual property licensing, and fan community subscriptions. Notably, they contributed ₩410B (~ $284M), marking a 59% increase from the quarter year-ago. Fan platform Weverse expanded its monthly active user base to a record 14.43M, while average revenue per paying user rose 24% quarter-over-quarter.
HYBE: Outlook and Pipeline Momentum
As reported by Yonhap, HYBE’s first-half sales also exceeded ₩2T (~ $1.4B) for the first time, driven by a strong second quarter. The company did 119 live shows across 12 acts in the first six months of the year and plans over 200 additional performances in the second half, pacing ahead of last year's total of 279 shows.
"Our second quarter results demonstrate that HYBE is redefining the global entertainment market while serving as a key export platform for Korea's cultural industry," Chief Executive Officer Lee Jae-sang told investors on an earnings call, as noted by Korea JoongAng Daily.
