Operating profit was 184.8 billion won ($128,950) in 2024, down 38 percent from a year earlier, the K-pop conglomerate said on a conference call Tuesday, missing the 202.6 billion won analyst estimate compiled by market tracker FnGuide. Revenue rose 4 percent to a record 2.25 trillion won during the same period, outperforming the market consensus of 2.196 trillion won.
The decline in earnings reflected increased expenses slew of rookie debuts and investments in the Latin American market as the company attempted to diversify away from cash cows including BTS, several members of which were completing mandatory military service throughout the year.
“The absence of BTS, and rookie groups making their debuts, affected the revenue structure,” HYBE Chief Financial Officer Lee Kyung-jun said.
The boy band previously accounted for 95 percent of the company’s total revenue, HYBE CEO Lee Jae-sang said on the call, but only made up 20 percent of it in 2024.
“We will be introducing new teams in the Latin [American] market with strategy plans that are catered to the culture and the fandom of the region,” HYBE’s CEO said.
“Our business started with the members of BTS […] and when the members return from [military service] they will make their comeback and hold performances, and their revenue percentage in the company will no doubt continue to increase,” CEO Lee added.
The company’s merchandising and concert revenue rose 25.6 percent and 29.1 percent on year in 2024, respectively. HYBE artists performed 172 total concerts across 33 cities around the world.
Fourth quarter operating profit was 65.3 billion won, down 26.7 percent from a year ago. Revenue rose 19.2 percent to 725.3 billion won during the same period.
BY CHO YONG-JUN [cho.yongjun1@joongang.co.kr]
