South Korea-based entertainment giant HYBE announced its financial performance for the third quarter of 2024 (the three months ended September 30).
During the quarter, all company segments created 527.8 billion won($389.2 million Calculated based on quarterly average exchange rates).
This represents a Annual increase of 1.9% drop and a 17.6% According to the company’s latest earnings report released on Tuesday (November 5), the company’s performance declined compared with the previous quarter (second quarter).
corporate “Indirect participation of artists” section, which includes merchandising and licensing, content, and Weavers The fan platform reported revenue of won 205 billion ($151.2 million) up Annual increase of 31.8% and down Quarterly growth of 5.4%. In the second quarter, this segment achieved double-digit growth both year-on-year and quarter-on-quarter.
Notably, the number of monthly active users (MAU) of the Weverse platform increased slightly, reaching 9.7 million Season 2 was 9.6 million. During the reporting quarter, HYBE launched new features for Weverse, including dark mode, new community tabs, region/country-based content recommendations, and advanced language translation capabilities. The app also integrates with the Weverse Shop, which sells exclusive merchandise, books, photos and annual fan club memberships.
Digging deeper into HYBE’s “artist indirect participation” market segment, the company’s “fan clubs, etc.” revenue has increased Annual increase of 23.4% arrive 26 trillion won ($19.2 million).
Merchandising and licensing revenue climbs Annual increase of 15.7% arrive 99.1 trillion won ($73.1 million).
Elsewhere in the company’s financial report, HYBE reported that its revenue came from “Direct involvement of artists” Segments including recorded music, concerts, advertising and performances declined Annual increase of 15.5% arrive 323 trillion won ($238.2 million). On a month-on-month basis, this number has also dropped significantly. 23.8%.
The company’s recorded music revenue falls Annual increase of 18.8% In the third quarter to won 214.5 billion ($158.2 million), while concert revenue fell Annual increase of 14.8% arrive won 74 billion ($54.6 million).
At the same time, operating profits continued to decline in the third quarter, Annual increase of 25.4% arrive won 54.2 billion. Operating profit margin increased to 10.3% from 7.9% in season two.
In the first nine months of 2024, HYBE’s cumulative revenue will reach won 1.53 trillion (US$1.13 billion),from won 1.57 trillion in the period one year ago. However, HYBE said in a press release quoted by local media that the company is ready to achieve 2 trillion won Annual revenue hit a record high for the second consecutive year.
HYBE blamed the sluggish performance partly on the impact of the Paris Olympics on the album release schedule. “There was a global event at the time, the Olympics, so no albums were released during this period,” the company quoted yonhap news agency As said. This reportedly affected the “direct artist involvement” component of the group.
The company also faces ongoing internal challenges, including a legal dispute with ADOR’s former CEO Heejin’s thoughtsmost recently leading the court to deny her reinstatement request on October 29.
Despite these headwinds, HYBE is still seeing things like hyphen and boy next dooralthough new jeans Their first single in Japan achieved a new milestone with sales exceeding one million, yonhap news agency explain. base station member Jimin and this Seraphim It also contributed positively to chart performance, the report said.
Looking ahead, HYBE expects sales to improve in the fourth quarter, with several artists including BTS planning to release albums cattyEnhypen, Le Sserafim and Boynextdoor. This prospect is supported by seventeen years old Recent success, its 12th EP pour out emotions Strong first week sales 3.16 million copy, based on Yicai.
On a conference call, C.E.O. Lee Jaesang vowed to “calmly continue” HYBE’s business while focusing on “fundamental values.” The executive also promised to continue supporting NewJeans. yonhap news agency reported.
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