HYBE Co., South Korea’s largest entertainment company, reported a near-complete wipeout of its third-quarter profit as internal conflicts and scheduling challenges around the Paris Olympics weighed on its performance.
Net income crashed 98.6% to 1.4 billion won ($1 million) in the July-September period, while operating profit fell 25.4% to 54.2 billion won. Revenue slipped 1.9% to 527.8 billion won, primarily due to weaker album and download sales.
The K-pop powerhouse faces an ongoing legal battle with Min Hee-jin, the former CEO of its subsidiary ADOR, over allegations she attempted to orchestrate a takeover with outside investors. While Min retained her board position at ADOR last month, she hasn’t regained her CEO role.
HYBE’s decision to pause new releases during the Paris Olympics further dampened results. The company found some relief through Netflix documentary revenues and concert film screenings of its boy band Seventeen.
The label sees brighter prospects ahead as BTS members gradually complete their mandatory military service, with Jin and J-Hope already discharged. The remaining members are set to finish their duties by June 2025.
HYBE projects its 2024 revenue will top 2 trillion won, marking its second consecutive year at that threshold.
