Recently, during the Q3 earnings announcement meeting, the CEO of HYBE revealed the company's incredible revenue despite previous adverse circumstances. Besides, the CEO also analyzed and pointed out HYBE's future plans in the context of BTS' enlistment.
Although there are good signals from the end of Q3 revenue, some shareholders still expressed concern about HYBE's solution to increase stock value as well as fill the revenue gap of BTS in the next 3 years. Here are the latest information from HYBE's shareholder meeting:
During the recent press conference and press conference for Q3 revenue, HYBE CEO Park Ji Won announced that they have recorded 445.5 billion KRW ($313.2 million) in revenue and 60.6 billion KRW in operating profit in the third quarter of this year. Sales increased 31% year over year, but operating profit fell 7.6% in the same period of last year.
According to him, performance increases as sales of indirect participation such as merchandise and games increase along with revenue of performances. Album sales were 129.2 billion KRW, down 0.4% year-on-year, and concert sales were 47.2 billion KRW. Net profit rose 90.9 percent to 94.9 billion KRW.
This increase in net profit is said to be the highest this year that HYBE has witnessed. The CEO of HYBE also pointed to this growth as the great attraction from the hot debut of rookie New Jeans. The return of SEVENTEEN, ENHYPEN along with BTS j-hope's solo debut also brought significant revenue. Besides, the revenue of world tours, including Seventeen and Tomorrow X Together (TXT) also said to bring high revenue for HYBE in Q3.
Talking about the percentage of revenue that groups accounted for in HYBE's revenue, CEO Park Ji-won said, "BTS's revenue this year accounted for 60-65%, the other artists accounted for 35- 40%. Up to this year, BTS's activities are still active, but next year, BTS' share of revenue will decrease and other artists' revenue will increase. When this number increases, there will be pressure on profit margins".
This is completely visible because BTS has so far been the mainstay of HYBE's revenue and stock volatility. However, since the BTS members are still doing solo activities, it is possible to balance the large gap in their activities. When BTS's solo and enlistment plans are firmly revealed, shareholders also feel more secure about investing in HYBE as well as stabilizing HYBE's stock value compared to the previous time.
In addition, through this shareholder meeting, the CEO of HYBE also expressed his hope that BTS will continue to operate as a 7-member group in 2025!
