HYBE posted its highest-ever first-quarter revenue.
HYBE said in a filing on the 29th that first-quarter revenue on a consolidation basis came to 698.3 billion won, up 39.5% from a year earlier. It fell 2.5% from the previous quarter (716.4 billion won). It is a record for a first quarter.
Operating loss was 196.6 billion won, swinging to a loss from a year earlier (operating profit of 21.6 billion won). It also turned to a loss compared with the previous quarter (a 4 billion won profit). Net loss was 156.7 billion won, also turning to a loss.
However, adjusted operating profit excluding one-off expenses was 58.5 billion won, up 170.8% from a year earlier. It also jumped 1,362.5% from the previous quarter.
Top-line growth was led by the album business. Direct participation revenue, including albums, concerts and advertising, was 403.7 billion won, up 25%, with album revenue rising 99% to 271.5 billion won.
BTS' fifth studio album "Arirang" drove the results. The album sold 3.98 million copies on its first day of release and topped the Billboard 200, the main U.S. albums chart, for three consecutive weeks.
Indirect participation revenue was 294.7 billion won, up 66%. MD/licensing and fan club revenue rose 29% and 69%, respectively.
The swing to a loss was largely due to expenses related to employee compensation, the company said. The company said, "About 255 billion won raised by the largest shareholder donating owned shares was recognized as an expense under accounting," and added, "The expense is a one-off expense with no external outflow of assets."
HYBE expects results to improve from the second quarter as major artists resume activities and world tour results are reflected.