'BTS Comeback Effect' Drives Hybe to Record-High Q1 Revenue of 698.3 Billion Won (Comprehensive)

Operating Loss of 196.6 Billion Won...
"One-Off Expense from Bang Si-hyuk's Stock Donation Recognized"

This Year’s Focus: 'Multi-Home, Multi-Genre' Strategy Advancement...
"Commitment to High-Quality Growth"

Hive achieved its highest-ever quarterly revenue in the first quarter, driven by the comeback effect of BTS and the rapid growth of new artists. However, the company posted an operating loss due to the recognition of large-scale one-off expenses.

Hive headquarters in Yongsan-gu, Seoul. Photo by Jin-Hyung Kang aymsdream@

Hive announced in a disclosure on the 29th that its consolidated revenue for the first quarter of this year reached 698.3 billion won, up 39.5% from the previous record-high figure of 500.6 billion won in the same period last year. The company noted that this record is particularly meaningful, as the first quarter is traditionally considered the off-season for the entertainment industry.

Direct participation revenue, which includes album sales, concerts, and advertising, amounted to 403.7 billion won, a 24.5% increase year-on-year. Notably, revenue from album sales surged 99% to 271.5 billion won. BTS's 5th full-length album, 'ARIRANG,' was the primary driver behind the strong sales. 'ARIRANG' sold 3.98 million copies on its release day alone. According to global music data analytics firm Luminate, 'ARIRANG' also set a new weekly sales record for a group since 1991, with 208,000 LPs sold in one week.

'ARIRANG' became the first album by a Korean artist to top the Billboard 200—Billboard’s main album chart—for three consecutive weeks. The lead single 'SWIM' marked BTS’s seventh number-one on the Hot 100, the main singles chart. Other artists under the label, including Enhypen, Cat’s Eye, and Cortis, also continued their successful activities.

During the same period, indirect participation revenue increased 65.5% to 294.7 billion won. Merchandise and licensing revenue rose 29%, while fan club revenue jumped 69%. The merchandise and licensing segment benefited from strong sales of tour-related products, including BTS light sticks, as well as character goods from artists under Hive Music Group. The company emphasized that fan club revenue surged thanks to high demand for pre-sale tickets for BTS’s world tour. Additionally, the fan platform Weverse, which turned profitable last year, saw its average monthly active users (MAU) in the first quarter rise 20% quarter-on-quarter, reaching an all-time high of 1,337.

In contrast, operating profit declined, resulting in a loss of 196.6 billion won. The company explained, “A one-off expense of 255 billion won was recognized as a cost in accounting, as Hive’s largest shareholder, Chairman Bang Si-Hyuk, made a personal contribution (stock donation) to fund employee bonuses, leading to the loss.” They added, “This expense is a one-time cost that does not involve an outflow of assets.” The company further stated, “Adjusted operating profit, which reflects underlying business performance, was 58.5 billion won, up 170.8% year-on-year. The operating margin based on adjusted operating profit was calculated at 8.4%.”

Hive expects that, starting in the second quarter, many Hive Music Group artists—including Tomorrow X Together, Le Sserafim, TWS, ILLIT, and Cortis—will resume activities with new album releases. The company also anticipates that revenue and operating profit will both increase as earnings from the BTS world tour are reflected.

Jae Sang Lee, CEO of Hive, stated during the earnings conference call, “The fact that all seats at stadium concerts—each averaging more than 50,000 attendees—are sold out is a powerful indicator of the strength of BTS’s intellectual property (IP). The gathering of ‘ARMY’ from North America, Europe, and Asia has proven the global expansion of K-pop.”

He added, “This year, we will continue to deliver performances that match the reputation of our artists. By advancing our 'multi-home, multi-genre' strategy, we aim to achieve additional success stories, fostering qualitative growth for existing artists and quantitative growth for new artists alike.”

This content was produced with the assistance of AI translation services.