HYBE concert revenue surged 40% in 2023
Seoul-based K-pop giant HYBE surpassed annual revenue of KRW 2 trillion (€1.5 billion) in 2023, powered by growth in its concert and album businesses.
Concert revenue soared around 40% year-on-year from KRW 258.2 billion (€178 million) in 2022 to KRW 359.1 billion (€253m) in 2023, with the total number of performances increasing from 78 to 125 during the period.
World tours by Suga of BTS and Seventeen, as well as the first North American stadium and Japanese dome tours by Tomorrow X Together and Enhyphen, contributed to the company’s revenue growth. Le Sserafim also held their first Asia tour with sold-out shows in Seoul, Japan, and Hong Kong.
Overall, the South Korean firm behind BTS scored the highest annual revenue (KRW 2.17 trillion) and operating profit (KRW 295.8bn) since its establishment in 2005, representing a year-on-year increase of 22.6% and 24.9%, respectively.
HYBE has maintained growth of annual revenue of more than 20% each year since going public in 2020
Its three-year compound annual growth rate (CAGR) stands at 31.7% for revenue and 24.7% for operating profit. HYBE has maintained growth of annual revenue of more than 20% each year since going public in 2020.
Album sales were another key driver in the financial results, with HYBE artists collectively selling 43.6 million units last year, doubling the figure from the previous 12 months. Its global fandom platform Weverse also exceeded a monthly active user base of over 10m.
In addition, HYBE America’s management affiliate SB Projects has signed new artists including singer-songwriter Ozuna and rapper Kaliii, last year. SB Projects is forecasting substantial revenue growth for this year with the release of Ariana Grande’s new album in March.
HYBE has also disclosed plans for a cash dividend of KRW 700 won per share, totaling KRW 29.2bn.
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K-pop giant HYBE aims to raise $380m for US M&A
HYBE, the South Korean music agency behind BTS and Ariana Grande, is reportedly looking to raise around 500 billion Korean won (approx USD $380m) to fund acquisitions in the US.
The Seoul-based K-pop giant “is in talks with investors to secure equity financing,” according to a report from Bloomberg, “and is open to having both strategic and financial partners”.
It comes after HYBE chairman Bang Si-Hyuk spoke about his company’s ambitions to expand its global presence via M&A and diversify its sphere of influence beyond K-Pop in the global music business.
In a March interview with CNN about the company’s US M&A strategy, Si-Hyuk notes that “globally, [K-pop] is not occupying much of the market”.
He added: “On the other hand, Latin music and afrobeats is very rapidly growing. So being where we are, it is more urgent to increase the exposure. For that purpose, I’m taking over labels and management companies in America to be able to build the infrastructure.”
“Globally, [K-pop] is not occupying much of the market… [so] it is more urgent to increase the exposure”
HYBE’s $1 billion-plus acquisition of Scooter Braun’s US-based Ithaca Holdings was a big step in bringing numerous non-K-pop operations into the fold, via HYBE America.
The deal saw HYBE take ownership of country music giant, Big Machine Label Group, as well as Braun’s own management company, SB Projects (home to Justin Bieber and Ariana Grande).
In February, HYBE expanded further in the US entertainment business when HYBE America, led by Braun, acquired Atlanta rap powerhouse QC Media Holdings or Quality Control, home to acts such as Lil Baby, Migos, Lil Yachty and City Girls, in a deal worth $300 million in total.
That acquisition came around the same time a bidding war broke out between HYBE and South Korea’s Kakao Entertainment for rival K-pop company, SM Entertainment.
In February HYBE acquired a 14.8% stake in SM Entertainment, for around $335m via the acquisition of shares from Lee Soo-man, SM Entertainment’s estranged founder.
HYBE planned to acquire a 40% stake in SM Entertainment but officially ended its takeover bid on 12 March. Kakao Corp. is now the largest shareholder in SM Entertainment though Bloomberg reports that HYBE still owns around an 8.95% stake in SM.
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BTS gross $53m from latest cinema release
K-pop stars BTS are continuing their record-breaking reign at the box office, grossing more than $53 million with their latest cinema release.
BTS: Yet To Come in Cinemas was screened in more than 5,817 cinemas across 128 countries, with Japan, USA and Mexico among the top-performing territories.
Across the opening weekend, the concert film scored multiple top five positions in territories including Japan, Korea, Italy, and Spain, plus the top ten in UK, Germany, Peru, and Australia. The project also reached number one in Mexico, Colombia, and the Philippines, plus the number one international release in India.
The film documented the group’s BTS Yet to Come in Busan concert, which took place at Busan Asiad Main Stadium on 15 October to promote the city’s World 2030 Expo bid.
The free show was attended by a 50,000-strong crowd, with 10,000 and 2,000 people tuning in via real-life “Live Play” broadcasts.
The concert was re-edited and remixed for the big screen and featured “new close-up angles and a whole new view of the entire concert”. In addition to a regular cinema format, BTS: Yet to Come in Cinemas was also screened in multiple special formats, such as ScreenX, 4DX and 4DX Screen.
“This figure is a testament to the strong relationships and collaborative efforts between CJ, HYBE, and Trafalgar”
“We are deeply gratified by the fact that one-fourth of our worldwide box office sales can be attributed to the special formats with ScreenX and 4DX, that we offered for the BTS concerts,” says Jong Ryul Kim, CEO of CJ 4DPLEX.
“This figure is a testament to the strong relationships and collaborative efforts between CJ, HYBE, and Trafalgar. We take great pride in this achievement and extend our sincere gratitude to viewers worldwide for their unwavering support.”
Marc Allenby, CEO of Trafalgar Releasing – which presented the film alongside CJ 4DPlex – adds: “We are delighted to see BTS: Yet To Come In Cinemas exceed an incredible $50m milestone at the box office. This figure is testament to the group, the ongoing dedication of the audiences and a credit to the international partnerships that made this landmark cinema event possible.”
The event was HYBE and Trafalgar Releasing’s fifth global title with the pop icons, after Burn the Stage: The Movie (2018), Bring the Soul: The Movie (2019), Break the Silence: The Movie (2020) and BTS Permission to Dance on Stage Seoul: Live Viewing (2022).
BTS’ one-off Busan concert marked their final performance together for some time, due to their members’ mandatory military service.
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HYBE calls off SM Entertainment takeover bid
K-pop behemoth HYBE has abandoned its controversial move to take over rival SM Entertainment.
HYBE, which is home to acts including BTS, Tomorrow X Together, NewJeans, LE SSERAFIM and Seventeen, says it has taken the decision due to the market “overheating”, amid competition with South Korean internet giant Kakao.
“HYBE assessed that the market situation had overheated due to competition with Kakao and Kakao Entertainment, which could negatively impact HYBE’s shareholders’ rights,” it says in a statement. “The two companies ― HYBE and Kakao ― also reached an agreement to seek cooperation on platform businesses.”
The Korea Times reports that Kakao will now work toward a controlling stake in SM and its management rights, while continuing to seek cooperation with HYBE on its platform business. Kakao offered SM shareholders 150,000 KRW (€108) per share, compared to HYBE’s previous offer of 120,000 KRW (€86) per share.
“Kakao and Kakao Entertainment respect HYBE’s decision to stop the move to acquire SM Entertainment”
“Kakao and Kakao Entertainment respect HYBE’s decision to stop the move to acquire SM Entertainment,” says a Kakao statement. “As a partner sharing mutually positive impacts, Kakao and Kakao Entertainment will continue various strategic cooperative relations with HYBE and SM Entertainment to help stoke the global status of K-pop and K-culture.”
Seoul-based SM Entertainment says that it “welcomes” HYBE’s decision to suspend its takeover bid. Last month, HYBE purchased a 14.8% stake in SM, in a move led by HYBE’s global team that involved acquiring former chief producer Lee Soo-Man’s shares in SM – days after the announcement of the SM 3.0 business strategy and development plan.
It pledged to buy another 25% stake in a separate notice, leading SM Entertainment CFO Cheol Hyuk Jang to release a video denouncing HYBE’s “hostile takeover”. Days earlier, SM had sold KRW 217.2 billion ($172.8m) shares – a 9.05% stake – to Kakao Corp.
In February Bloomberg reported that SM had seen its profits soar 70% thanks to the return of concerts and live events, posting an operating profit of 25.2 billion KRW (€18.3 million) in Q4 2022. Sales rose 18.2% to 256.4bn KRO, with its number of concerts in the three-month period up 35 times on the same quarter in the Covid-hit 2021.
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K-pop concerts’ return boosts SM profits by 70%
K-pop powerhouse SM Entertainment has seen its profits soar 70% thanks to the return of concerts and live events, as controversy grows over its “hostile takeover” by rival HYBE.
Bloomberg reports that Seoul-based SM posted an operating profit of 25.2 billion won (€18.3 million) in Q4 2022, with sales rising 18.2% to 256.4bn won. Its number of concerts in the three-month period was up 35 times on the same quarter in the Covid-hit 2021.
SM, which is home to acts such as BoA, TVXQ, Girls Generation, Shinee, EXO and Super Junior, says it expects profits from concerts and music operations will continue to grow in the first half of 2023, with boy band NCT Dream and pop duo TVXQ! holding more than 50 concerts.
NCT Dream recently completed a Japanese tour, including their first dome shows at Kyocera Dome Osaka, which pulled in 120,000 people over three days. The final show was transmitted through WOWOW, Japan’s largest satellite channel broadcaster, as well as live viewing, which broadcasts live performances at 140 movie theatres nationwide, and was also broadcast live on the global platform Beyond LIVE.
The band will tour Asia, Europe and the Americas from March, while girl group Aespa are also planning another 10 concerts in Japan in the first six months of the year.
“As soon as SM’s new vision ‘SM 3.0’ was announced, the largest shareholder sold his stake, and a hostile takeover attempt by a competitor started”
Earlier this month, HYBE became the largest shareholder in SM Entertainment with the purchase of KRW 422.8 billion shares — a 14.8% stake.
The move was led by HYBE’s global team and involved acquiring former chief producer Lee Soo-Man’s shares in SM days after the announcement of the SM 3.0 business strategy and development plan.
HYBE, which has pledged in a separate notice to buy another 25% stake, is home to acts including BTS, Tomorrow X Together, NewJeans, LE SSERAFIM and Seventeen through its subsidiary labels, such as Big Hit Music, Pledis Entertainment, Source Music and ADOR.
However, over the weekend, SM Entertainment CFO Cheol Hyuk Jang released a video denouncing HYBE’s “hostile takeover”.
“As soon as SM’s new vision ‘SM 3.0’ was announced, the largest shareholder sold his stake, and a hostile takeover attempt by a competitor started,” he says, as per Koreaboo. “This is an attempt that ignores not only the fierce deliberation and efforts of the 600 SM employees who have dreamed of becoming the No.1 entertainment company in the world, but also the values and pride of SM that it has pursued together with the fans and artists.”
“HYBE is raising not only its own concert ticket prices but also those of the labels it has acquired, which illustrates the impact monopoly will have on the industry”
Jang also raised competition concerns over the acquisition, adding that it will lead to higher ticket prices for concerts.
“If HYBE takes the majority of the market share by acquiring SM’s managerial rights, K-pop would lose opportunities for a greater advancement forward,” he said. “Ultimately, K-pop fans will be the ones that will be most affected by the monopoly.
“SM puts reasonable prices to concert tickets to allow broader scope of fans to enjoy cultural performances. Meanwhile, HYBE has taken advantage of its position in the K-pop market to almost double the concert ticket prices as reported in the news several times recently. HYBE is raising not only its own concert ticket prices but also those of the labels it has acquired, which illustrates the impact monopoly will have on the industry.
“The consolidation of SM and HYBE will accelerate ticket price increase, adding burden to fans who love and support K-pop and K-pop artists. The concert ticket price hike is just one example. The monopoly created as a result of HYBE’s hostile acquisition of SM will cause more diverse and direct problems, including decreased diversity of artists, music and concerts.”
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HYBE becomes top shareholder in rival SM Entertainment
K-pop behemoth HYBE has become the largest shareholder in SM Entertainment, the rival South Korean company thought to have kickstarted the wave of popularity around Korean pop culture.
The purchase of KRW 422.8 billion shares — a 14.8% stake — was reported today (10 February) and helps strengthen HYBE’s position as a leader in K-pop. Reportedly, the company pledged in a separate notice to buy another 25% stake.
Through its subsidiary labels, such as Big Hit Music, Pledis Entertainment, Source Music and ADOR, HYBE is home to K-pop acts including BTS, Tomorrow X Together, NewJeans, LE SSERAFIM and Seventeen.
The SM move was led by HYBE’s global team, which includes chairman Bang Si-Hyuk, CEO Park Jiwon and Braun and involves acquiring former chief producer Lee Soo-Man’s shares in SM Entertainment. In October 2022, SM announced that it terminated a contract with Lee Soo-Man a year early.
Seoul-headquartered SM is home to such acts as aespa, BoA, TVXQ, Girls Generation, Shinee, EXO, Super Junior and NCT 127.
The deal is targeted at “raising its competitiveness in the K-pop industry and producing a synergy effect,” Hybe said in its filing.
Shares of SM Entertainment today soared, rising more than 16% at the open in Seoul, while HYBE rose 6%
Shares of SM Entertainment today soared, rising more than 16% at the open in Seoul, while HYBE rose 6%, JYP Entertainment rose 2.5% and YG Entertainment gained 3.8%.
Today’s blockbuster announcement comes at the end of a busy week of business for both HYBE and SM.
On Tuesday (7 February), SM Entertainment sold KRW 217.2 billion ($172.8m) shares – 9.05% stake – to South Korean internet company Kakao Corp.
The following day (8 February), HYBE America announced it had acquired Quality Control (QC Media Holdings, Inc.).
The Atlanta-based entertainment company covers music (Lil Baby, Lil Yachty, City Girls and Migos are among its signings), sports, film and television founded in 2013 by CEO Pierre “P” Thomas and COO Kevin “Coach K” Lee. The deal, valued at $320 million in stock and cash, was led by HYBE America CEO Scooter Braun.
The rise and rise of K-pop will be discussed at the forthcoming International Live Music Conference (ILMC), taking place at the Royal Lancaster Hotel in London, between 28 February to 3 March.
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BTS switch concert venue due to safety concerns
A BTS concert planned as part of Busan’s World 2030 Expo bid in their native South Korea has switched venues due to safety concerns.
The South China Morning Post reports the free BTS Yet to Come in Busan show on 15 October was set to attract up to 100,000 people to a special stage on the site of a former glass factory near Ilgwang Beach.
However, following complaints the venue was ill-equipped for an event of such scale, the group’s management company Hybe has now announced the show will instead take place at the Busan Asiad Main Stadium.
“In order to prioritise the safety and comfort of attendees and ensure a smooth and transparent concert environment, while still protecting the purpose of this concert, the company has come to the decision to change the concert location,” says a statement.
“This will be a great opportunity to contribute to further development of K-Culture as well as its local pop cultures in Busan”
The new venue is expected to be able to accommodate 100,000 fans, which would make it BTS’ biggest ever one-day concert in South Korea. It will also be livestreamed online and a real-life “Live Play” broadcast – where fans can watch the concert in real-time on a big screen – will take place at the Busan Port International Passenger Terminal.
BTS were confirmed as ambassadors for Busan’s bid to host the 2030 World Expo in Busan Metropolitan City earlier this summer.
“Given the importance of its bid as a nation to host the World Expo 2030 in Busan, BTS and Hybe will do our best to successfully bring the World Expo to Busan,” says Hybe’s chairman Bang Si-Hyuk. “This will be a great opportunity to contribute to further development of K-Culture as well as its local pop cultures in Busan.”
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New fund allows investors to back K-pop stars
K-pop fans can now buy shares in the companies behind stars like BTS and Blackpink via a new Exchange Traded Fund (ETF), launched in the US.
The KPOP and Korean Entertainment ETF launched on the NYSE Arca exchange yesterday (1 September) and includes the stocks of 30 corporations, including four music companies that helped K-pop stars achieve global fame.
HYBE (BTS, Tomorrow X Together, Enhypen), SM Entertainment (SuperM, NCT 127, Girls’ Generation), JYP Entertainment (Stray Kids, Twice) and YG Entertainment (BlackPink, Big Bang) are among the index of companies on the ETF.
An ETF — which can be bought and sold on-demand like individual stocks — allows US investors to buy foreign stocks on a domestic stock exchange.
In South Korea, K-pop fans and other retail investors could easily own shares of K-pop companies because they trade on South Korea exchanges but until now it was “almost impossible” for US fans to buy the individual stocks.
“Global fans who love K-pop [can now] participate in the potential growth and development of the K-pop industry”
Jangwon Lee, the CEO of CT Investments and Contents Technologies, the company behind the ETF, says: “K-pop, which has become a global keyword, has become part of mainstream culture for fans in Korea as well as around the world.
“We are launching this ETF to provide an opportunity for global fans who love K-pop to participate in the potential growth and development of the K-pop industry as well as investors access to Korea-listed companies that are driving the future of global content industry forward.”
Lee is also CEO of Seoul-based Beyond Music which is reportedly Asia’s largest single music IP asset management company and has raised $200 million to buy up rights in Asia.
The new ETF comes after HYBE (formerly Big Hit Entertainment) reported its best-performing quarter yet in Q2 2022.
The South Korea-based entertainment giant has had huge success in the live music sphere, with record-breaking concerts from K-pop superstars BTS.
Most recently, BTS broke the global event cinema record after grossing $32.6 million (€29.8m) with the first live worldwide cinema broadcast of a concert from South Korea.
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HYBE reports best-performing quarter yet
HYBE (formerly Big Hit Entertainment) has published its financial results for Q2 of 2022, heralding its best-performing quarter yet.
The South Korea-based entertainment giant reported revenue of KRW 512 billion (USD 391 million) in the second quarter of 2022, up 79.7% from the first quarter of this year. While operating income hit KRW 88bn for the three months prior to 30 June.
The record-breaking revenue came from Hybe artists’ album sales, promotion, and concerts, as well as merchandise and IP licensing.
HYBE’s roster of artists includes K-pop superstars BTS, Seventeen, TXT, Enhypen, Le Sserafim, NewJeans and more.
Performances from BTS and Seventeen were major drivers in pushing HYBE’s concert revenue to KRW 85bn (USD 65m) – up 38.6% quarter on quarter.
In February, BTS brought a four-night residency, called Permission to Dance On Stage, to the 65,000-capacity Allegiant Stadium in Las Vegas.
All four dates were broadcast live at the nearby MGM Grand Garden Arena, in what was dubbed a ‘live play’ event, while the final day of their residency was streamed online worldwide.
Performances from BTS and Seventeen were major drivers in pushing HYBE’s concert revenue to KRW 85bn
Seventeen, meanwhile, helped boost HYBE’s concert revenue with two dates at Seoul’s Gocheok Sky Dome (cap. 25,000) in mid-June. These performances were also livestreamed to global audiences.
However, Hybe’s biggest revenue driver in Q2 was its ‘Artist Direct Involvement’ business, which generated revenues of KRW 326bn (USD 249m), up 153.4% year on year.
HYBE’s second biggest revenue source in Q2 was album sales, driven by releases in the quarter from the likes of BTS and Seventeen.
The company’s album sales grew 97.1% YoY, from KRW 107bn (USD 82m) in Q2 2021 to KRW 211bn (USD 161m) in Q2 2022.
HYBE revenues from merchandising and licensing also soared in Q2, by 97.2% YoY, from KRW 50bn (USD 38m) in Q2 2021, to 99 bn KRW (USD 75m) in Q2 2022.
Revenues from HYBE’s ‘Contents’ business, meanwhile, fell 22.6% YoY to KRW 71bn (USD 54m). HYBE also reveals within its investor filing that Monthly Active Users of its fan-community app WeVerse fell by 6% versus Q1 2022.
The WeVerse app, which collates content made by and for HYBE artists such as music videos, teasers, movies, merch sales and even live streams, has been cited by the company as one of the key drivers behind its success during the pandemic.
In spite of seeing its WeVerse MAUs decline, HYBE’s revenues derived from its ‘Fan club etc’ business line grew 96% YoY to KRW 17bn (USD 13m).
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