BABYMONSTER and TREASURE drove YG's transition to profit.
On the 8th, YG Entertainment (hereafter YG) announced that its consolidated operating profit for the second quarter of this year was 840 million won, marking a turnaround from an operating loss of 1.1 billion won in the same period last year.
This operating profit exceeded the market forecast of 310 million won compiled by Yonhap Infomax by 170.9%. Revenue was 10.4 billion won, an increase of 11.6% compared to the same period last year. Net profit turned positive at 1.12 billion won.
The success of BABYMONSTER and TREASURE contributed to YG's transition to profit. YG analyzed, "The global tour achievements of low-tier intellectual property (IP) such as BABYMONSTER's world tour and TREASURE's U.S. fan concert tour are driving profitability."
BABYMONSTER kicked off their first world tour 'HELLO MONSTERS' in Seoul on January 25 and 26, covering a total of 21 cities and 32 performances, meeting global fans just a year after their debut, including stops in North America, Japan, Singapore, Hong Kong, Ho Chi Minh City, Bangkok, Jakarta, Kuala Lumpur, Taipei, and Toronto.
After releasing their first full-length album 'DRIP' last year and consistently topping music charts, they also expanded the scale of their world tour due to overwhelming support. Having already demonstrated their outstanding vocal and performance skills, BABYMONSTER showed their true worth on the world tour. During their first North American tour, they filled arena-level venues in Newark and Los Angeles that can accommodate over 10,000 people, and in Japan, they attracted a total of 150,000 fans, setting the record for the 'shortest time for the most audiences' for a K-pop girl group.
Ahead of their comeback in September, TREASURE held their first fan concert 'SPECIAL MOMENT' in Brooklyn, Washington D.C., Oakland, and Los Angeles in April, connecting with local American fans for the first time. Having solidified their global presence through large-scale Asian tours and fan meetings, TREASURE will embark on a North American tour starting with a performance in Seoul, marking their footsteps in the U.S., considered one of the two major music markets in the world. Additionally, they successfully completed a fan concert tour spanning 9 cities and 17 performances in Japan, including shows in Hyogo, Aichi, Fukuoka, and Saitama.
The pop-up stores of BABYMONSTER and TREASURE held in China also garnered explosive responses. Both teams gradually expanded their scope of activities, increasing their global impact, resulting in YG's second-quarter operating profit turning positive. YG explained, "Despite the absence of album releases in the second quarter, revenue from concerts, digital content, and merchandise increased, maintaining a stable growth trend."
Previously, YG had reported sales of 100.2 billion won and operating profit of 9.5 billion won in the first quarter, driven by BABYMONSTER and TREASURE. Their future growth momentum is highly anticipated.
BABYMONSTER will continue their 'BABYMONSTER' tour in September, solidifying their position as a next-generation global player. Moreover, TREASURE, who recently celebrated their 5th anniversary, will release their mini album 'LOVE PULSE' on September 1, followed by performances in Seoul from October 10 to 12, confirming the 'PULSE ON' tour across Japan and Asia, ensuring a busy second half of the year.
[Photo] YG Entertainment
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