HYBE Revenue Up 38% on Concerts, But Lagging Album Sales Drive Unprofitable Quarter

K-pop music giant HYBE said on Monday that concerts by BTS member Jin, SEVENTEEN and TOMORROW X TOGETHER helped drive its third quarter revenues up 38%, but lagging album sales contributed to an overall unprofitable quarter.

Operating profit, which measures a company’s total core business earnings after interest and tax are taken out, fell to a loss of 42.2 billion Korean won (negative $30 million) in the quarter, reflecting higher income taxes and pressure on HYBE’s recorded music business, which fell 11.5% from last year due to fewer new album releases. Earnings before interest, tax, depreciation and amortization were negative 16.8 billion Korean won (about $12 million) for the quarter. HYBE’s stock ended the trading day on Seoul’s Stock Exchange flat, having recovered from a 3.7% decline earlier on Monday. In the past year, the company has posted one other unprofitable quarter — Q4 2024.

Total third quarter revenue was up 38% to 727.2 billion Korean won ($519 million) from a year ago on higher recorded music sales, concerts, advertisements and appearances, which HYBE lumps together as “artist direct involvement revenue.” That segment’s revenue rose nearly 48% from a year ago to 477.4 billion Korean won ($340.6 million), accounting for 66% of overall sales, the company said in a statement.

Concert revenue from tours including Jin’s first solo tour, which included performances in Japan, the United States, England and the Netherlands, surged by more than 200% to 245 billion Korean won ($175 million). But recorded music revenue within the segment fell to 189.8 billion Korean won ($135.4 million) compared to 214.5 billion Korean won a year ago.

Here are some of the Quarterly Highlights:

Total Revenue: Reached 727.2 billion KRW ($518.6 million), up 37.8% YoY
Concert Revenue: Up 231.1% YoY to 244.9 billion KRW ($173.8 million)
Artist Revenue: Up 47.8% YoY to 477.4 billion KRW ($339 million)
Operating Loss: Down 42.2 billion KRW ($30 million)
Net Loss: 52 billion KRW ($36.9 million), down from 15.5 billion KRW ($11 million) profit in Q2
Recorded Music Revenue: Down 11.5% YoY to 189.8 billion KRW ($134.8m)
Negative EBITDA: Fell to 16.8 billion KRW ($11.9 million)