HYBE Surpasses 2 Trillion Won in Annual Revenue for Second Consecutive Year

HYBE has achieved remarkable success, surpassing 2 trillion won in annual revenue for the second consecutive year, driven by strong album sales and significant growth in concert and merchandise sectors. Following its historic milestone in 2023 as the first domestic entertainment company to exceed 2 trillion won in annual revenue, HYBE continued to show an upward trend in 2024, setting a new record. Despite the members of BTS (방탄소년단) fulfilling their military service obligations last year, various artists from the HYBE music group maintained their momentum and contributed to the company's growth. However, due to changes in revenue distribution among artists and costs associated with initial infrastructure investments, operating profit saw a decline compared to the previous year.

For 2024, HYBE reported a consolidated revenue of approximately 2.2545 trillion won, marking a 4% increase from the previous year and the highest figure since its establishment. Direct participation revenue decreased by 1.8% to 1.4453 trillion won, while indirect participation revenue rose by 14.5% to 809.3 billion won. Although the album sales segment, which holds a significant share, fell by 11.3%, the concert sector experienced a substantial increase of 25.6%, offsetting the decline in album sales. This shift in consumer spending patterns appears to have diversified following the end of the pandemic.

In the album sector, HYBE's domestic artists achieved a 40% share of the annual Circle Chart, up from 38% the previous year. SEVENTEEN recorded over 10 million album sales for the second consecutive year, while TOMORROW X TOGETHER had two albums in the Circle Chart's top 10 and all three of their albums released last year made it to the Japan Oricon year-end chart. ENHYPEN achieved cumulative sales of 5.45 million albums, ranking 8th and 9th on the annual album charts in the U.S. and Japan, respectively, showcasing their global popularity. NewJeans sold over 3 million albums, becoming the top-selling female K-pop artist. BOYNEXTDOOR, gaining popularity with their recent release '오늘만 I LOVE YOU', became a million-seller just a year and a half after their debut.

In the digital music sector, HYBE artists shone brightly as 15 songs from their roster entered the top 20 of the Circle Chart's Global K-Pop Chart, demonstrating their strong content competitiveness. Solo tracks from BTS members Jin, Jimin, V, and Jungkook, along with RM's feature on Megan Thee Stallion's 'Never Play', made it onto the Billboard Hot 100. LE SSERAFIM charted with 'EASY' and 'CRAZY' in both halves of the year. TWS (투어스), who debuted last year, topped the Melon annual chart with their debut song '첫 만남은 계획대로 되지 않아', while AILET made history as the first K-pop debut song to enter both the U.S. Billboard Hot 100 and the UK Official Singles Top 100 with 'Magnetic'.

Last year, HYBE music group artists held 147 concerts and 25 fan meetings, achieving the highest concert revenue in the company's history. According to Billboard's '2024 K-Pop Concert Revenue Chart', SEVENTEEN, ENHYPEN, and TOMORROW X TOGETHER dominated the top three spots. Notably, concert revenue in the fourth quarter reached 188.9 billion won, more than double the performance from the same period the previous year.

Looking at indirect participation revenue, the MD and licensing sectors saw a 29.1% increase to 420 billion won, marking the highest performance to date. The large-scale world tours by HYBE music group artists significantly boosted sales of concert-related merchandise and light sticks, with character products inspired by members of BTS, SEVENTEEN, and TOMORROW X TOGETHER receiving widespread popularity.

HYBE America also achieved notable success, with artists under the Big Machine Label Group securing 10 number one spots on Billboard charts, including Carly Pearce, who was nominated for the Grammy Awards for two consecutive years. Another label under HYBE America, QC Music, continued to see major artists like Quavo, Lil Baby, and Lil Yachty actively engaged. Lil Baby's 'WHAM', released in early January, topped the Billboard 200 chart, marking a record of having all four of his recent albums reach number one on that chart. The management division of HYBE America, SB Projects, recently strengthened its artist management capabilities by hiring Cade Hudson, who has represented major American artists like Britney Spears, Usher, Justin Timberlake, Lady Gaga, and Selena Gomez at the Creative Artists Agency (CAA).

For 2024, HYBE's consolidated operating profit was 184.8 billion won, a 38% decrease from the previous year. This decline was influenced by the hiatus in team activities due to BTS's military service and changes in revenue distribution among artists following the debut of several new groups. Costs associated with investments in the debut of Cat's Eye in the U.S. and the establishment of HYBE Latin America also contributed to the decrease in profit margins. Additionally, as new growth businesses, including Weverse and gaming, began to operate in earnest, upfront investment costs for securing long-term growth drivers were incurred.

However, HYBE's profitability is expected to improve this year. With BTS's anticipated comeback and the balanced growth of HYBE music group artists, economies of scale are expected to emerge. The hiring of Cade Hudson is also expected to enhance artist management capabilities, and revenue generation from HYBE Latin America is anticipated to contribute positively to profitability.

The performance of new growth business sectors is also seen as a factor for improving profitability. Revenue from the Weverse digital membership service, which started in December last year, will begin to reflect in the results from January this year, following the end of the free usage period. HYBE IM is strengthening its publishing lineup with new titles like 'Architect: Land of Exile' and new releases from Bonfire Studio, which garnered significant interest at the '2024 G-Star'. They also plan to sequentially introduce several self-developed titles, including the mobile puzzle game 'Puzzle SEVENTEEN'. AI audio company Superton has officially launched 'Superton Shift' and 'Superton Play'. Superton Shift allows users to convert their voices into character voices, currently attracting around 350,000 subscribers. Superton Play applies TTS technology to convert text into speech, supporting 150 voices in three languages, with B2B deliveries ongoing in formats like AI chatbots.

Additionally, new team projects will be launched this year in regions such as the U.S., Japan, and Latin America. HYBE aims to lead market innovation with a 'multi-home, multi-genre' strategy that integrates the K-pop system and know-how with local cultures and characteristics. In the U.S., a new boy group project will be initiated in collaboration with producer Ryan Tedder, known for working with global musicians like Beyoncé, Adele, and Ed Sheeran. In Japan, YX LABELS (formerly HYBE LABELS Japan) will introduce a new generation of J-pop groups following &TEAM.