Highlights
- Net profit at JYP fell 40.3% to $15.32M as the gap from Stray Kids tours weighed on live event revenue.
- Album sales rose 36.7%, while streaming revenue climbed 71.6% on stronger catalog demand and new releases.
- Operating margin declined 16.9% from 24.5% but remained above HYBE’s 11.8%.
JYP Entertainment logged a sharp drop in second-quarter profitability, driven by a quiet live touring calendar after Stray Kids’ dominATE world tour concluded in October 2025. Net profit for the KOSDAQ-listed K-pop agency fell 40.3% year-over-year to ₩21.7 billion (~ $15.32 million USD) for the three months ending on June 30. Revenue contracted 15.1% to ₩183.1B (~ $129.29M), while operating profit declined 41.4% to ₩31.0B (~ $21.89M).
TWICE Helps Offset Stray Kids-Driven Live Revenue Drop
The downturn depicts a tough baseline comparison against 2Q2025, when Stray Kids were actively touring. At that time, JYP’s quarterly revenue more than doubled, and net profit grew twenty-sevenfold.
As Stray Kids’ next world tour did not launch until July 2026, concert revenue of JYP fell 35.7% year-over-year to ₩39.9B (~ $28.17M) in the second quarter this year. Merchandise sales dropped 34.5% to ₩43.9B (~$30.99M) as well. Additionally, appearance revenues also dipped 8.0% to ₩7.0B (~ $4.94M), in spite of their headliner at New York’s Governors Ball in June.
Live revenues in the quarter were mainly sustained by girl group TWICE, whose THIS IS FOR tour had an explosive three-night stand at Tokyo's Japan National Stadium in April. Notably, the group brought in 240,000 fans.
JYP’s Recorded Music Business Gains Momentum
Despite the contraction in live events, JYP’s main recorded music business grew across physical and digital channels. Tangible album revenue rose 36.7% year-over-year to ₩37.0B (~ $26.13M), supported by five title releases compared to three in the earlier-year period. Notably, catalog sales for Stray Kids surged to 420,000 units, up from 120,000 units in the second quarter of 2025.
Streaming revenue simultaneously grew 71.6% to ₩19.7B (~ $13.91M), bolstered by global fan base expansion and a reclassification of YouTube income. Whereas advertising revenue rose 20.5% to ₩13.6B (~ $9.61M).
Total cost of sales decreased 10.6% to ₩112.3B (~ $8.69M) as artist management fees dropped 25.3% to ₩48.1B (~ $33.97M). Additionally, higher production expenses for fresh releases triggered content production costs up 25.9% to ₩34.0B (~ $24.01M), while selling, general, and administrative expenses increased 6.9% to ₩39.8B (~ $28.11M).
JYP’s Q2 Slump Contrasts with HYBE, SM Growth
JYP’s second-quarter decline contrasted with revenue expansion at key domestic rivals. HYBE reported a 105.5% revenue surge, amounting to ₩1.45 trillion (~ $1.02B). The increase was driven by BTS’ ARIRANG world tour, which lifted its concert division by 243.3%.
On the other hand, SM Entertainment logged a 15.4% revenue increase to ₩349.6B (~ $246.94M). However, equity investment losses brought its net income down 5.6% to ₩29.2B (~ $20.62M).
For the first half of 2026, JYP recorded total revenue of ₩369.1B (~ $260.75M) and net profit of ₩53.6B (~ $37.86M). Amidst these mixed revenue results, JYP is set to partner with HYBE, SM Entertainment, and YG Entertainment to establish a joint venture.
Provisionally named Fanomenon, this joint effort will be a domestic Coachella-like music festival that is aimed at capturing a lion’s share of South Korea's, as well as the world’s, live performance market.
