HYBE Corp reported second-quarter revenue of 705.6 billion won ($508.7 million), a 10.2% increase from the previous year, driven by robust concert performances that helped offset declining album sales.
The South Korean entertainment conglomerate behind BTS posted operating profit of 65.9 billion won ($47.5 million), representing a 29.4% year-over-year jump and a significant sequential improvement from the first quarter’s 21.6 billion won ($15.6 million).
Concert revenue surged 31% to 188.7 billion won ($136.1 million) as HYBE artists including Seventeen and ENHYPEN embarked on world tours. The touring business has become increasingly critical for the company as recorded music sales contracted 8.4% to 228.6 billion won ($164.8 million), reflecting broader weakness in the K-pop album market.
The company cited “a market-wide decline in physical album sales” as the cause for the recorded music segment’s underperformance, highlighting challenges facing the industry’s traditional revenue streams.
HYBE’s expansion efforts showed mixed results. The company’s US-based group KATSEYE achieved modest chart success, with their second EP ‘Beautiful Chaos’ claiming the 4th spot on the ‘Billboard 200’ in July. However, the costs of launching new acts and international operations continue to weigh on margins.
Meanwhile, HYBE’s Weverse superfans platform ended June with 10.9 million monthly active users, up from 9.6 million a year ago. The platform’s transaction volumes grew 41% quarter-over-quarter, suggesting improved monetization despite the gradual user growth.
The company’s Latin America expansion includes reality shows and new group development, though production costs for these ventures affected quarterly margins. HYBE’s multi-genre strategy represents an ambitious attempt to replicate K-pop’s success across different markets and musical styles.
While BTS members continue to chart individually during their military service hiatus, the group’s anticipated 2025 comeback remains central to HYBE’s growth projections. The company’s ability to maintain momentum without its flagship act will face further testing as competition intensifies in the global entertainment market.
