Korean music company HYBE, home to K-pop superstars BTS, posted revenue of 285 billion KRW ($226 million) in the first quarter of 2022, the company announced Tuesday (May 3).
The result — which marks a nearly 60% revenue increase year over year but a decrease of 37.8% from last quarter — followed a record-breaking year for HYBE in 2021, when the company surpassed $1 billion in revenue for the first time thanks to its acquisition of Scooter Braun’s Ithaca Holdings.
The Q1 results were bolstered by a return to large-scale live events, including BTS’ Permission to Dance shows in Seoul in March, which drew over 45,000 fans in person. An additional 1.4 million fans viewed the livestream, which smashed box office records; the March 12 screening alone grossed $6.9 million in North America, making it the top-grossing live cinema event of all time. As a result, in Q1 HYBE’s concert revenue rebounded to 61.3 billion KRW ($48.6 million) — an amount that includes livestreaming revenue, which was folded into the “concerts” earnings category starting this year (it was previously reported under “content”). Concert revenue was also juiced by HYBE America artist Justin Bieber, whose Justice world tour launched in February.
On the other hand, HYBE recorded music sales, while up 18.5% year over year, fell 24.5% from last quarter due to a lack of album releases in Q1, aside from Enhypen’s Dimension: Answer (a repackage of the group’s first studio album, Dimension: Dilemma). The company’s recorded music revenue is set to rebound considerably in the next quarter, though, thanks to several album releases during the quarter. Those upcoming releases include new girl group Le Sserafim (May 2), Tomorrow x Together (May 9), Seventeen (May 27) and, most importantly, BTS (June 10). Several unspecified Q2 album releases from HYBE America were also mentioned during Tuesday’s earnings call.
Q1 Financials
- Revenue: 285 billion KRW ($226 million), up 59.8% y/y
- Operating profit: 37 billion KRW ($29 million), up 62.7% y/y
- Net income: 31 billion KRW ($24 million), up 78.7% y/y
Q1 Format Breakdown
- Recorded music sales: 64.6 billion KRW ($51.2 million), up 18.5% y/y
- Concerts: 61.3 billion KRW ($48.6 million), N/A% y/y
- Advertisements and fees: 27.7 billion KRW ($22 million), up 126.7% y/y
- Merchandise and licensing: 68.3 billion KRW ($54.1 million), up 5.4% y/y
- Content: 48.5 billion KRW ($38.5 million), up 30.6% y/y
- Fan club, etc.: 14.5 billion KRW ($11.5 million), up 50.9% y/y
