HYBE maintains profit trend in Q1, sales slightly down. Successful debuts, steady album sales contribute to stable results.

HYBE maintained the trend of operating profit in the black in the first quarter of this year after going public. HYBE revealed today (2nd) that the consolidated sales for the first quarter of 2024 reached 360.9 billion won (approximately 40.9 billion yen). This figure decreased by about 12% compared to the same period last year. The successful debut of TWS and ILLIT filled the gap during senior artists' rest periods, with both groups' albums achieving sales of over 500,000 copies each, reaching half a million sellers. Although there were relatively few new song releases in the first quarter, thanks to the steady sales generated by the sound sources, they were able to achieve stable results. Among HYBE's album sales in the first quarter, the proportion of sound sources increased to about 50%. Direct participation sales such as albums, performances, and CM appearances amounted to 217 billion won (approximately 24.5 billion yen), accounting for about 60% of the first quarter's sales. SEVENTEEN, ENHYPEN, and &TEAM's performances made significant contributions in this area. Indirect participation sales such as BELIFT LABMD (planned products), licenses, contents, and fan clubs amounted to 143.9 billion won (approximately 16.3 billion yen), representing about 40% of the total. The "Nanatsu Tour with SEVENTEEN" jointly invested by HYBE and CJ ENM's subsidiary production company Egg Is Coming, and the tour MDs of SEVENTEEN and TOMORROW X TOGETHER contributed to the indirect participation sales in the first quarter. The consolidated operating profit for the first quarter recorded a 73% decrease from the same period last year to 14.4 billion won (approximately 1.6 billion yen) due to the impact of the blank period of existing artists' activities and the initial costs related to the debut of new groups. It was explained that the ability to maintain profitability even in a situation where existing artists' activities were limited was made possible by the improvement of the foundation's financial strength. HYBE expects both sales and operating profit to improve as many artists resume activities from the second quarter and world tours begin in earnest. In April, SEVENTEEN, TOMORROW X TOGETHER, and BOYNEXTDOOR made comebacks, while ENHYPEN and NewJeans are also preparing for comebacks. BTS's Jin is scheduled to complete his military service in June. With comebacks of existing artists and debuts of new artists, the release of new songs this year is expected to increase by more than 30% compared to the previous year. The points of contact with fans will also be expanded. Last year, eight groups held 128 concerts and fan meetings, while this year, ten groups are planning approximately 160 tours and fan meetings. HYBE is also planning to strengthen the global popularity of K-POP. In addition to the existing multi-label system, they will promote a "multi-home, multi-genre" strategy that enhances IP development reflecting local cultures and characteristics from this year. They aim to develop IPs reflecting local cultures and characteristics in Japan, the United States, and Latin America to secure a leading position among local operators and attract fans unfamiliar with K-POP. The girl group KATSEYE, the first result of an attempt to transplant K-POP methodology to the pop mecca of the United States, is also part of the multi-home, multi-genre strategy. KATSEYE is scheduled to debut in the United States this summer. BTS's RM and NewJeans making a comeback on the same day? The agency commented, "We received a response from ADOR that there is no problem." HYBE, 12 rebuttals to Min Hee-jin's press conference, "Threatening NewJeans as a hostage... Slave contracts are not true" (full text)