Korea’s HYBE, the company behind K-pop superstars BTS, has released its financial results for the second quarter of 2021 (the three months ended June).
HYBE posted second-quarter sales of 278.6 billion South Korean won (approximately $ 244 million), an increase of 79.2% or 123.2 billion, according to a release released today (Aug. 5).
HYBE’s Q2 2021 revenue of $ 278.6 billion
HYBE’s net income for the second quarter was 20.8 billion South Korean won ($ 18 million), an increase of 9.9% or 1.9 billion South Korean won ($ 1.6 million) year over year is equivalent to.
As the news agency Yonhap first reported, the company’s album sales in the second quarter rose 105.4% year-on-year to 107 billion South Korea won (approx. 94 million USD).
That number was 96.2% higher than the previous quarter (Q1 2021) when HYBE posted album sales of 54.5 billion South Korean won ($ 48 million).
Strong album sales in the quarter came from Japanese release The Best and Seventeen’s Your Choice by BTS.
BTS ‘hit single Butter also just spent nine weeks at # 1 on the Billboard Hot 100.
A major reason for HYBE’s recent results was the company’s income from content such as online meet-and-greets. This content revenue increased 236.9% year-over-year to 91.3 billion South Korea won ($ 80 million) in the second quarter.
Weverse, HYBE’s fan community app that brings together content by and for big hit artists, including music videos, teasers, films, merchandise sales, and live streams, also grew in the second quarter of 2021 – to 5.3 Millions of monthly active users, an increase of 9%. compared to the previous quarter (Q1).
The average revenue per paying user (ARPPU) for Weverse increased by 53% compared to the previous quarter (see below).
“We expect sales and operating income from artist activities to grow in the second half of this year,” said Park Ji-won, CEO of HYBE, according to Korea JoonAng Daily today.
“We will continue to pave our way in the music-based entertainment lifestyle market through competition and partnerships that open up new opportunities.”
The company’s financial results come after last month’s news that Bang Si-hyuk step down from his role as CEO of HYBE (formerly known as Big Hit Entertainment) as part of a major change in leadership at HYBE.
Bang Si-hyuk, also known as “Hitman”, will remain as Chairman of the Board of Directors and will also focus on music production, which HYBE called “his specialty” at the time (Bang Si-hyuk will be credited) on tracks from BTS, as well as K-Pop stars like ENHYPEN and others).
Bang Si-hyuk’s departure from the role of CEO of HYBE followed the company’s partnership and creation of a JV label with Universal Music Group in February and the acquisition of Ithaca Holdings from Scooter Braun in April for $ 1 billion.
Korea JoonAng Daily reports that “legal fees and other expenses” related to the Ithaca acquisition totaled 10 billion South Korean won ($ 8.7 million).
This amount was incorporated into the company’s operating profit, which declined 6.2% year-over-year to South Korea won 28 billion (US $ 24.5 million).
HYBE’s new CEO, Park Ji-won, who joined the company last May, now oversees the overall management strategy and operations of HYBE.
HYBE’s US business is led by Yoon Seok-jun, CEO of HYBE America (Lenzo) and Scooter Braun (CEO), respectively.
According to HYBE, the restructuring was carried out “to promote globalization through the extensive use of top management executives”.
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