Photo Credit: BTS’ Jin by 티비텐 / CC by 3.0
Hybe sets a new record for quarterly revenue driven by the global success of K-pop acts like BTS member Jin. But the company’s significant operating loss continues.
K-pop juggernaut Hybe has posted record quarterly revenue of $524.7 million (727.2 billion KRW), a 37.8% year-over-year increase. The company behind K-pop powerhouse BTS also posted cumulative sales approaching $1.37 billion (2 trillion KRW). Those numbers were driven by the continued robust global success of K-pop tours like Enhypen, Tomorrow X Together, and BTS’ Jin’s solo tour.
Direct engagement revenue, which includes artists’ album sales, world tours, and live events, accounted for about 66% of total revenue. Major tours like Jin’s contributed to a “threefold increase” in concert revenue to $167.M (245 billion KRW). At the same time, album sales decreased due to relatively fewer artists putting out new content, raking in $129.4M (189.8 billion KRW).
Indirect engagement revenue—things like merch, licensing, content, and fan club operations—increased by 22% to $170.3M (249.8 billion KRW). That was led by merchandise and licensing growth with sales of $114.7M (168.3 billion KRW), a 70% year-on-year boost, thanks to tour-specific merch and IP-based character goods.
Hybe’s global superfan platform Weverse also turned a profit during the quarter, driven by new digital membership and advertising initiatives. The launch of Weverse DM on China’s QQ Music on November 18 is expected to further expand the platform’s footprint.
Meanwhile, the company also posted a significant operating loss of $30.4 million (42.2 billion KRW), shifting from a profit in the same quarter last year, largely attributed to strategic investments in global IP expansion. This reportedly includes early-stage marketing and content production for new teams such as boy band Cortis and groups from Hybe Latin America. It also includes one-time expenses from restructuring their North American business.
“While profitability has temporarily decreased due to multiple debuts, the expansion of global fandoms and revenue base stabilization will strengthen Hybe’s growth structure over the medium to long term,” said Hybe Chief Financial Officer Lee Kyung-jun.
“Our K-pop division, the core of Hybe, is expected to maintain 10 to 15 percent profitability this year, indicating strong fundamentals. Most of the current profitability pressures are expected to ease in the fourth quarter, paving the way for revenue structure improvement from next year,” added Hybe CEO Lee Jae-sang.
“From next year, we expect to enter a phase of profitability recovery, led by BTS’ return, accelerated growth of K-pop artists, expansion of our ‘multi-home, multi-genre’ strategy, and stable profitability of Weverse.”
Hybe said it is shifting from a management-focused to a label-focused intellectual property integration business model to improve its operational stability and overall profitability. Specifically, its North American restructuring accounted for roughly 6% of its margin decline.
