Hybe Reports 40% Profit Drop During BTS Military Hiatus Despite Record Revenue
Korean music giant Hybe reported a 38% decline in operating profit for 2024, primarily due to BTS members' military service hiatus and strategic investments in infrastructure.
BTS members performing on stage
Despite the profit drop, Hybe achieved its highest revenue year to date, generating 2.25 trillion Korean won ($1.58 billion), a 4% increase from 2023. The company's Q4 2024 performance showed:
- Revenue: 725.3 billion won ($507.5 million)
- Operating profit: 65 billion won ($45.5 million)
The decline in operating profit is attributed to:
- BTS' temporary military service break
- Changes in artist sales mix due to new debuts
- Investments in Weverse platform and gaming initiatives
During BTS' absence, other Hybe artists have shown strong performance:
- SEVENTEEN sold over 10 million albums between 2023-2024
- ENHYPEN and NewJeans contributed to revenue growth
- Artist-involved promotions generated 1.45 trillion won ($1 billion)
Weverse platform showed significant user growth in 2024:
- North America: +26%
- Brazil: +21%
- Mexico: +14%
- Japan: +22%
- Taiwan: +54%
The company expects a strong rebound in 2025 with BTS' anticipated return, as members complete their mandatory military service by June. Investments in Weverse, which now hosts mainstream artists like Ariana Grande and Dua Lipa, are expected to positively impact performance starting January 2025.
Related Articles
ADOR vs NewJeans Legal Battle Intensifies at Injunction Hearing - Next Court Date in April
