KRW 88.3 billion operating income was recorded for this year’s second quarter thanks to the rapid growth of album sales and concert sales from HYBE LABELS artists.
HYBE (CEO Jiwon Park) delivered a record-breaking performance for the second quarter of 2022. This came as a result of HYBE’s significant expansion of its artists’ activities.
HYBE announced today that it recorded a revenue of KRW 512.2 billion and an operating income of KRW 88.3 billion for Q2 2022 (*in accordance with K-IFRS before external audit adjustments). Its revenue increased by 83.8%, and the operating income was up 215.3% from Q2 2021, both reaching an all-time high on a quarterly basis. Net profit of Q2 2022 surged 359.3% year-on-year to KRW 93 billion.
Adjusted EBITDA, a proxy for cash flows, tallied at KRW 107.4 billion. Its adjusted EBITDA-to-sales ratio was 21%, projecting a continual cash flow growth.
Q2 2022 saw an outstanding performance of revenue earned from HYBE key artists’ full-fledged activities and promotions. This revenue, which led to the quarter’s overall performance, accounted for 64% of total revenue at KRW 325.9 billion. The revenue doubled from the previous quarter thanks to HYBE LABELS artists’ album releases and concerts.
Among revenue categories related to artists’ activities and promotion, album sales delivered the biggest portion. Album sales recorded revenue of KRW 210.9 billion, up 226.2% quarter-on-quarter and up 97.1% YoY.
HYBE LABELS artists sold a total of 8.53 million copies of albums in Q2 2022, accounting for 42% of total album sales on the Circle Chart, a record chart that tabulates the relative weekly popularity of songs and albums in South Korea. Among the top four entertainment companies in Korea, HYBE LABELS’ market share reached 63%.
Concert revenue, another revenue category related to artists’ promotions, was KRW 85 billion, up 38.6% QoQ. The success of BTS’ Las Vegas concerts, SEVENTEEN’s Seoul concerts and more were reflected in Q2 2022.
Among revenue categories excluding artists’ promotion, merchandise and licensing delivered a remarkable growth. Revenue generated from merchandise and licensing were KRW 98.8 billion, up 42% QoQ and up 97.2% YoY. HYBEL LABELS artists’ world tour served as a catalyst for a significant increase in their merchandise sales.
The outstanding performance came as a result of all-time icon BTS as well as SEVENTEEN, TOMORROW X TOGETHER and ENHYPEN, who has achieved continual growth as top global artists under HYBE’s multi-label system. Each of the aforementioned acts has sold over one million copies of albums while presenting high-demand concerts to ever-growing fans around the world.
A series of new artists’ debuts has also contributed to HYBE’s notable performance. LE SSERAFIM made a highly successful start as global rookies with their debut album FEARLESS which sold over 410,000 copies and landed on the U.S. Billboard Chart and Japan’s Oricon Chart.
NewJeans released three title tracks and music videos without an album teaser and launched an exclusive interactive app ‘Phoning’, disrupting the stereotypical girl-group debut formula and reaching over 440,000 copies of pre-orders for the debut album. With the addition of a new boy group to debut in Japan during Q4 through the ongoing audition program, ‘&AUDITION’, HYBE will have launched three new acts by the end of 2022.
CEO Jiwon Park said, “HYBE will continue its efforts to launch new artists in 2023 by strengthening its multi-label system even further”. He added, “We are also working on a project to launch a new U.S.-based idol group and will expand our global business strategy through localization”.
On August 3, HYBE’s IR conference also addressed the success of the recently-launched mobile game ‘BTS Island: In the SEOM’. The game accumulated over 6 million active subscribers and recorded up to 2.15 million DAUs (Daily Active Users). Overseas users accounted for 95.7% as the game is highly sought-after for its service crossing regional boundaries.
The IR conference also discussed the blueprint for WEVERSE which launched ‘WEVERSE LIVE’ in partnership with Vlive. WEVERSE internalized a livestreaming service that was previously hosted by VenueLive and livestreamed BTS’ j-hope’s Lollapalooza performance. HYBE stated that WEVERSE would continue to provide new and innovative services that will expand fan experience.
Additionally, HYBE announced its determination to strengthen communication with the capital market and minimize risks that may damage shareholders’ interests. The company also underscored that it would ensure checks and balances function smoothly by utilizing the outside directors, and establishing an ESG committee within the board to uplift environmental and social values from a medium-to-long term perspective.
About HYBE
HYBE, rebranded from Big Hit Entertainment in March 2021, is a global entertainment lifestyle platform company that seeks boundless expansion in order to innovate the music industry. Ever since, HYBE has been expanding its multi-label system including BIGHIT MUSIC, BELIFT LAB, SOURCE MUSIC, PLEDIS Entertainment, KOZ ENTERTAINMENT, ADOR, HYBE LABELS JAPAN, while HYBE AMERICA also manages its affiliate labels including Big Machine Label Group. In addition to the label business, HYBE established an integrated structure with its solution business that creates concert, video content, game, original story and retail, as well as a platform business through Weverse, a global fandom platform. Composed of its three headquarters based in Korea, Japan and the US, the company works towards bringing innovative change throughout the global music industry.
