HYBE recorded 49.9 billion won in operating profit last year on a consolidation basis. That was down about 73% from a year earlier.
HYBE disclosed on the 12th that last year's sales on a consolidation basis came to 2.6499 trillion won, with operating profit of 49.9 billion won, on a preliminary basis. Sales rose 18% from a year earlier.
HYBE renewed its highest sales since its founding as its global business model expanded and the performances institutional sector grew, but operating profit declined. Initial investment expenses tied to new artist debuts such as AONE (Japan), KOR-TIS (Korea), and Santos Bravos (Latin), and one-off expenses incurred during business structure reorganization for structural improvement, increased.
HYBE is reducing the volatility of its existing management-centered structure in North America and reorganizing its business structure into a label-centered intellectual property (IP) business model. It recognized 200 billion won in impairment losses in the fourth quarter last year as non-operating income and expenses in the management business institutional sector and elsewhere. This is an accounting loss with no actual cash outflow.
The "multi-home, multi-genre" strategy aimed at the global market delivered results. Performance institutional sector sales rose about 69% from a year earlier to 763.9 billion won. In the album market, it captured a 30% share with an annual cumulative sales volume of about 19.6 million copies based on the Circle Chart, and the fandom platform "Weverse" also turned a profit last year through a revamped revenue structure and operational efficiencies.
HYBE said, "This measure is intended to enhance accounting transparency and predictability, and given the strengthened fundamentals of HYBE America, additional large-scale impairment risk appears limited," adding, "The preemptive structural improvement effect will lead to a full-fledged increase in profitability starting this year."
This year, BTS is set to release its fifth full-length album "Arirang" on Apr. 20. The first complete-group album in about four years will be accompanied by the largest world tour ever. The group has also finalized a schedule of 82 shows across 34 cities worldwide.
In Korea and the North American market, a new girl group will debut within the year. A boy group project is also preparing to debut. In India, the company plans to launch a project optimized for local culture.