Seoul: While BTS military enlistment did not seem to affect HYBE’s stock, the label recently reported a dip in their Q3 operating profits.
As soon as BTS’ label, HYBE, announced the news, many expected stocks to plummet, just as they did when the boy band announced a ‘hiatus’ in June this year. However, label stocks saw a steady rise due to highly awaited comebacks by girl groups as well as successful tours by boy groups.
According to HYBE’s latest statement, they saw a 7.6 percent drop in operating profit for the third quarter of 2022. They also predicted that next year’s profit rate would decrease due to BTS members’ enlistment, since the group have a major hand in sales.
HYBE’s consolidated third-quarter sales for 2022, estimated at ₩ 446 billion KRW, were up by 30.6 percent from last year due to high album sales and the resumption of face-to-face performances. Despite the rise in sales, operating profit fell 7.6 percent to ₩ 60.6 billion KRW due to the costs of conducting face-to-face performances and producing &Auditions – The Howling.
The label has projected better earnings in 2024. To cover up for BTS’ absence, HYBE plans to debut at least four new groups in 2023. Additionally, the label announced that TXT, ENHYPEN, and SEVENTEEN would perform at twice the size of their recent concert venues due to mostly sold-out shows. HYBE’s rookie girl groups NewJeans and LE SSERAFIM will also play an important role in the label’s plans due their explosive growth both domestically and internationally.
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