A few days ago, HYBE announced the financial information of the year 2022 summary of its labels. After nearly two years of being affected by the previous ¢σνι∂-19 pandemic, 2022 is considered a rebirth year for HYBE as well as many other entertainment companies.
In some previous consolidated financial statements of the group. 2022 ended with great success belonging to artists under HYBE. Not only that, this company continues to affirm its leading position in the industry with the highest profit and revenue, surpäṩṩing other big companies such as YG, SM or JYP.
However, the financial summary of the subbrands below may show some brands with negative net and operating margins. Meanwhile, BTS' label is still seeing huge profits:
The year 2023 opens up the goal of conquering the global market of 4 "big companies" including HYBE Labels, SM Entertainment, JYP Entertainment and YG Entertainment. K-media said that companies' development strategies will be shown through different keywords.
According to K-media HYBE offers a plan to maximize the effectiveness of the global development strategy through the keyword "multi-brand". вιg нιт Music, Source Music, Pledis Entertainment, KOZ Entertainment and ADOR are companies under HYBE Labels.
This is not a strange strategy for fans as well as those interested in the K-pop market. Since recent years, HYBE has acquired many sub-labels as well as founded various under-label brands and debuted rookie groups, notably NewJeans and Le Sserafim.
Especially in the context that since 2022 is an important time for HYBE when the "ace" BTS has begun a hiatus to perform m̴i̴l̴i̴t̴a̴r̴y̴ service. Therefore, HYBE must promote the activities of subsidiaries and rookie groups to cope with risks and stabilize the trust of shareholders.
At the moment, HYBE's strategy is showing initial effects when witnessing the resounding success of two girl groups NewJeans and Le Sserafim - artists under HYBE Labels' sub-labels ADOR and Source Music. With impressive records in both digital music and album sales, the breakthrough of girl groups has helped HYBE gain huge profits as well as stabilize the stock value.
However, if you look at the latest financial summary report of 2022 published by HYBE about the sources of money and profits of subsidiaries, it can be seen that the BTS pillar is still a key factor that cannot be changed. Although NewJeans and Le Sserafim had a good start and brought in huge revenue, HYBE's main profit still came from вιg нιт Music, the management company of BTS and TXT.
Specifically, in 2022, вιg нιт Music (BTS, TXT) owns total äṩṩets of 417.3 billion won with total debt of 136.7 billion won. In which, revenue: 573 billion won brought in net income: 148 billion won and total comprehensive income: 148.7 billion won.
Pledis Entertainment (SEVENTEEN, Baekho, Hwang Minhyun, fromis_9) is also a small label with net income: 16 billion won and total comprehensive income: 16.4 billion won. Meanwhile, the remaining labels including SOURCE MUSIC (LESSERAFIM), ADOR (Newjeans) and KOZ Entertainment (Zico, Dvwn) have negative incomes.
SOURCE MUSIC (LESSERAFIM) has total äṩṩets: 14.1 billion won, total debt: 22.5 billion won, revenue: 22.8 billion won, net income: negative 6.3 billion won, total comprehensive income: negative 6 billion won. ADOR (Newjeans) has total äṩṩets: 24.8 billion won, total debt: 12.7 billion won, revenue: 18.6 billion won, net income: negative 3.2 billion won and total comprehensive income: negative 3.2 billion won. In the end, KOZ Entertainment (Zico, Dvwn) had net income: negative 2.2 billion won and total comprehensive income: negative 2.2 billion won.
Looking at these figures, it can be seen that вιg нιт Music accounts for the highest percentage of profit and revenue among HYBE's sub-labels. Of course, everyone understands that BTS is currently the group that brings in the largest profit and revenue for HYBE, accounting for more than 60%.
Even when BTS started enlisting, this percentage has not decreased even though NewJeans and Le Sserafim have more widespread influence. Therefore, it can be said that it is difficult for any group to fill the void of BTS except the group members themselves when they promote solo activities.
