Hybe posts 59.8% increase in revenue for Q1 2022, touts relationship with BTS
After posting a 59.8% year-over-year increase in revenue during the first quarter of 2022, agency BTS Hybe (KRX: 352820) has doubled its commitment to the popular K-pop act , stating that “we will be with them until the end. ”
Seoul-headquartered Hybe recently unveiled its performance details for the first three months of 2022, and superiors highlighted their support for BTS during the corresponding earnings call. Of course, these comments are especially noteworthy given the fast approaching deadline for compulsory drafting of BTS members into the military.
Starting with Hybe’s financials, the company generated ₩284.97 billion ($225.38 million at the current exchange rate) in January, February and March this year – up 59.8% from in the first quarter of 2021, as mentioned, but down 37.8% from the fourth quarter of 2021 and its ₩459.95 billion ($363.77 million).
In the first quarter 2022 total, Hybe said “direct artist involvement” drove revenue up 130.2% year-on-year to £153.64 billion ($121.52 million ). In this category, albums accounted for ₩64.64 billion ($52.12 million), up 18.5% year-on-year, compared to ₩61.31 billion ($48.48 million) for concerts and ₩27.69 billion ($21.9 million) for “advertisements, appearances and management”. 126.7% year-on-year improvement.
The remaining ₩131.34 billion ($103.86 million) of Hybe’s total Q1 2022 revenue comes from “indirect artist involvement,” comprising ₩68.25 billion (53. $97 million) for merch and licensing, ₩48.54 billion ($38.36 million) for “content,” and £14.55 billion ($11.5 million) for “ fan club, etc.
Despite these year-over-year increases, all segments except concerts and fan club experienced a quarter-over-quarter revenue decline.
Hybe’s net profit for the quarter totaled ₩30.82 billion ($24.37 million), although the company’s share price was down about 3% during trading hours. today at ₩247,000 ($195.36) per share. On this front, Hybe also reported that monthly active users of its social platform WeVerse increased from 6.8 million to 6.4 million during the first quarter of 2022.
And as mentioned at the start, Hybe executives on their Q1 2022 earnings call doubled down on their support for BTS long term.
“BTS’s journey is just the beginning. It’s hard to gauge how far they’ll go, and we’ll be with them till the end,” Hybe relayed, according to a translation by AllKPop.
According to the same translation, Hybe CEO Park Ji Won said, “BTS plans to come back with a new album on June 10. Being able to be with BTS is a big blessing for Hybe. They shouldn’t be taken for granted, so our focus will be on supporting BTS so they can grow without stopping.
“There is a misunderstanding that Hybe is intentionally reducing its reliance on BTS due to the recent decrease in BTS’s share of Hybe’s total revenue. However, BTS’ proportion of sales has been relatively small as other Hybe artists’ sales have increased.
As for Hybe’s efforts to develop acts besides BTS before Jin is due to enlist in his country’s military in December, the company teamed up with Universal Music last year to form a new K-pop girl group. It’s also worth noting that Spotify Island, which was just announced by Roblox, is expected to focus on K-pop music and artists later this spring.