HYBE Becomes First K-Pop Agency to Achieve 2 Trillion KRW in Revenue

HYBE has become the first K-pop agency to cross the 2 trillion KRW revenue mark. With a reported 2.18 trillion KRW (1.67 billion USD) in earnings for 2023, this represents a 22.6% increase from the previous year. This financial milestone was propelled by strong album sales from NewJeans, SEVENTEEN, and TOMORROW X TOGETHER (TXT). Album sales alone accounted for 44.6% of the agency’s total revenue, an increase from 31.1% in the previous year. 

Together, these groups played a significant role in boosting HYBE’s album sales from its Korean artists, nearly doubling the total from 22.2 million units in 2022 to 43.6 million units. In Korea, SEVENTEEN led album sales with a staggering 15.9 million units, followed by TXT and NewJeans, who sold 6.5 million and 4.3 million albums, respectively. These numbers are from Circle Chart, which tracks sales only in Korea.

Hybe becomes 1st K-pop agency to top 2 tln won in annual sales

A bright spot

Revenue from the agency’s US-based record labels—Nashville’s Big Machine Label Group and Quality Control, an Atlanta-based hip-hop label the agency acquired in February 2023—grew 70% to 150 billion KRW (114.9 million USD). This accounts for nearly half of HYBE’s streaming revenue growth for the year. Meanwhile, streaming revenue from the agency’s Korean labels outside Korea also saw an increase of 102% to 107 billion KRW (81.9 million USD). This highlights HYBE’s global reach and the growing international demand for K-pop.

Concert revenue also experienced a substantial increase of 39.1% to 359.1 billion KRW (275 million USD). It accounted for 16.5% of HYBE’s total revenue, up from 14.5% in 2022. This indicates that 2023 was a big year for live performances. This growth was attributed to an increase in the number of concerts. HYBE had 125 concerts from seven touring artists in 2023, compared to 78 concerts from four touring artists in 2022.

Despite these successes, some revenue sources such as ads, appearances, content, licensing, and merchandise experienced declines. Thankfully, revenue from fan clubs emerged as a bright spot, showing a 35.9% increase to 91.2 billion KRW (70 billion USD).

QC Sold For $320 Million To Scooter Braun’s Company Hybe America

More good news

Here’s more good news: HYBE’s gross profit improved by 19.7% to 1 trillion KRW (773 million USD), though the growth rate was slightly lower than that of revenue. This was due to a 25.2% increase in the cost of sales. Nonetheless, the agency’s operating profit improved by 24.9% to 295.8 billion KRW (227 million USD), while its net profit rose by 288% to 186.5 billion KRW (143 million USD). This demonstrates effective cost management and operational efficiency.

Geographically, Korea’s share of HYBE’s revenue went from 33% in 2022 to 36% in 2023. Japan’s share also saw an increase, going from 28% to 31%. However, North America’s share dropped slightly. It fell from 32% to 26% despite the acquisition of Quality Control.

The fan community platform Weverse ended 2023 with 10.1 million monthly active users in the fourth quarter. This shows a slight decrease from 10.6 million in the third quarter but an overall year-on-year increase, as Weverse had only 8.5 million monthly active users in December 2022. The platform expanded its artist communities significantly, from 71 at the end of 2022 to 122 by the end of 2023.

eternal sunshine (label reactions)

HYBE is moving fast toward the future

Looking ahead, HYBE plans to expand its roster while promoting its existing artists. TWS has already debuted and is doing well, securing endorsement deals and music show wins. I’LL-IT and KATSEYE are also gearing up for their debuts. Meanwhile, HYBE America’s management division, Scooter Braun Projects, is poised for significant growth, especially with the upcoming release of Ariana Grande’s album Eternal Sunshine.

In addition to its financial achievements, HYBE also announced a shareholder value enhancement plan with a dividend of 700 KRW per share, totaling 29.2 billion KRW. This reflects the agency’s commitment to prioritizing shareholder value despite being in a growth phase.

HYBE CEO Park Ji-won believes the company’s dynamic and collaborative business model is a key driver of its success. “HYBE is moving fast toward the future with an unwavering vision. Our multi-label system allows each label to operate independently to reduce heavy reliance on certain artists or labels, and the labels compete and cooperate under the system,” he said. – K-Pop News Writer

Featured Image: Talk about record-breaking earnings! Source: The Korea Times.