HYBE's Q3 Revenue Tops KRW 1.5 Trillion on BTS Tour, Setting a "New Record"

Concert revenue reaches KRW 726.8 billion, tripling in a year
Cumulative revenue hits KRW 3.674 trillion... KRW 4 trillion for the year in sight

BTS performs at Morumbi Stadium in Sao Paulo, Brazil, on the 28th and 30th-31st of last month. Courtesy of Big Hit Music.

HYBE, riding on the world tour by BTS, posted revenue of more than KRW 1.5 trillion in the third quarter of this year. Concerts accounted for nearly half of total revenue, and the figure rose to about 70% when merchandise sales and licensing were included. Concerts and merchandise became larger sources of revenue than albums and digital music.

HYBE said on Nov. 3 that it recorded consolidated revenue of KRW 1.5257 trillion and operating profit of KRW 188.5 billion in the third quarter of this year. Both figures were quarterly records. Revenue rose 109.8% from the same period last year, while operating profit swung to a profit from an operating loss of KRW 42.2 billion. The operating margin was 12.4%. HYBE surpassed the records it set just one quarter earlier, when it posted revenue of KRW 1.45 trillion and operating profit of KRW 170.9 billion in the second quarter.

Concert revenue in the third quarter totaled KRW 726.8 billion, accounting for 47.6% of total revenue. That was about three times the KRW 245 billion recorded in the same period last year. It was also up 12.2% from KRW 647.7 billion in the second quarter. BTS's 24 stadium concerts across 11 cities in Europe and North America in the third quarter contributed significantly to revenue growth. Overseas concerts by other artists under the company, including ENHYPEN, LE SSERAFIM, &TEAM, TWS, ILLIT and CORTIS, also continued.

As the scale of concerts grew, sales of related merchandise also increased. Revenue from the merchandise (MD) and licensing segment reached KRW 334.6 billion, up 7.7% from KRW 310.6 billion in the second quarter. This was a quarterly record. Combined revenue from concerts and this segment totaled KRW 1.0614 trillion, or 69.6% of total revenue. In addition to concert income, merchandise purchased by fans and the licensing of characters and trademarks became major sources of revenue.

HYBE said, "About 2 million MD items were sold across 12 cities during the 45 days of BTS's North American tour," adding, "Unlike previous tours, when merchandise sales were concentrated at the beginning, sales continued throughout the tour this time."

HYBE headquarters in Yongsan-gu, Seoul. Photo by Kang Jinhyeong

Revenue from albums and digital music totaled KRW 282.8 billion, down 13.5% from KRW 326.8 billion in the second quarter. New releases by ENHYPEN, &TEAM, KATSEYE and Yeonjun of Tomorrow X Together were reflected in the results. Existing tracks by BTS and KATSEYE also contributed to streaming revenue. Although revenue from albums and digital music declined, overall revenue increased as concerts and the MD segment grew at a faster pace.

Cumulative revenue through the third quarter of this year was KRW 3.674 trillion. Cumulative operating profit was about KRW 162.8 billion. Adjusted operating profit, excluding about KRW 255 billion in employee stock compensation expenses recorded in the first quarter, was KRW 417.9 billion. HYBE Chairman Bang Si-hyuk donated shares he held to the company, and HYBE used them to compensate employees, recording the expense in its accounts.

The challenge ahead is whether HYBE can maintain its current revenue level after BTS's large-scale concerts end. BTS is scheduled to continue its tour through the first half of next year.

HYBE is also expanding the overseas activities of its artists, including KATSEYE, which is active in the United States, and &TEAM, based in Japan. Last month, it launched "HYBE Global Label Services" to support overseas activities in South Korea, the United States, Japan, India and other markets. HYBE said, "Following BTS's tour, which will continue through next year, we plan to apply this success formula to artists at other labels as well."

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