"Even Without BLACKPINK, YG Rakes in Cash Thanks to 'Dutiful Daughters' BABYMONSTER" [Weekend Money]

Concert Revenue Estimate for 2027 Raised Thanks to BABYMONSTER
Second Quarter MD Revenue Surpasses Expectations at KRW 28.2 Billion

Group Baby Monster. YG Entertainment

The global expansion of Baby Monster’s concert tours is emerging as a key growth engine for YG Entertainment’s performance. Following large-scale shows at major Japanese venues that attracted sizable audiences, the group’s world tour is expanding into Western markets such as Europe, North America, and South America, which is expected to drive an increase in concert revenue. With rising demand for merchandise (MD) confirmed at local pop-up events linked to the concerts, the potential for dual monetization through both performances and MD sales is also increasing.

According to Sangsangin Securities, the company raised its 2027 concert revenue estimate for YG Entertainment to 578.6 billion won, reflecting additional dates for Baby Monster’s second world tour. This is based on the expectation that the additional concerts will attract around 350,000 more attendees. The expansion of concerts in Western markets following the first world tour is projected to translate the growth of the global fanbase into higher concert revenue.

Nara Lee, a researcher at Sangsangin Securities, commented, "Among major fifth-generation girl groups, Baby Monster has moved quickly into the concert monetization stage," adding, "In 2026 as well, an expanded concert scale is confirming the growth trajectory of their fandom."

In practice, Baby Monster drew 90,000 attendees over two days for their second world tour, ‘CHOOM,’ at Japan’s Kyocera Dome. Not only the scale of the concerts but also the purchasing power of the fanbase has been confirmed. According to Sangsangin Securities, YG Entertainment’s MD sales in the second quarter this year amounted to 28.2 billion won, surpassing expectations, with a significant portion attributed to Baby Monster.

Yonhap News Agency

In particular, in Japan, pop-up stores linked to the concerts are creating a new avenue for expanding MD sales. Timed with the Kyocera Dome concerts, pop-ups were held from September 19 to 27 in Osaka and Tokyo, securing sales channels for MD not only in the concert city of Osaka, but also in Tokyo. High demand for MD was observed at these local pop-ups, and additional exclusive city pop-up merchandise was offered at the venues, expanding the range of products for sale.

Nara Lee noted, "Growth in concert attendance, combined with expanded sales through local pop-ups, is expected to drive accompanying growth in MD revenue." She also explained that in Japan, local MD sales contribute to royalty income, and that MD revenue is likely to increase in other regions too as the tour expands.

There is further room for Baby Monster’s concert scale to grow. Sangsangin Securities sees a possibility that estimates for next year’s first-half concert revenue could be revised further upward depending on additional schedules and the scale of venues. Notably, with the tour expanding into Europe, North America, and South America, around 350,000 additional attendees are anticipated.

YG Entertainment’s overall results are also expected to continue improving. Sangsangin Securities projects this year’s revenue at 619.8 billion won with operating profit of 76.2 billion won. Next year’s revenue is forecast at 578.6 billion won, down 6.6% from this year, but operating profit is expected to rise by 3.4% to 78.8 billion won. By 2028, revenue is forecast to increase to 732.2 billion won with operating profit reaching 106.5 billion won.

Nara Lee added, "In 2027, album sales by Big Bang will contribute to the company’s performance, and with additional concerts by Baby Monster as well as the debut of a new boy group, the activities of young intellectual property (IP) will also expand." She stated, "Baby Monster’s growth in scale and the joining of new IP will not only supplement the company's limited IP portfolio, but are also expected to reinforce its growth momentum centered on newer artists."

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