SEOUL: Hybe, a major K-pop powerhouse, has reported a decline in both sales and operating profits for the third quarter of this year, attributing the downturn to distractions from the Paris Olympics and a protracted feud with Min Hee-jin, the former CEO of its subsidiary label ADOR.According to Yonhap News Agency, Hybe's regulatory filing revealed an operating profit of 54.2 billion won (US$39 million) for the quarter, marking a 25.4 percent decrease year-on-year. This figure fell short of the 55.7 billion won forecasted by Yonhap Infomax, the financial data firm of Yonhap News Agency. Revenue experienced a decline of 1.9 percent to 527.8 billion won, while net profit saw a drastic plunge of 98.6 percent to 1.4 billion won.Despite these setbacks, Hybe noted a significant improvement in its operating profit margin, which increased from 4 percent in the first quarter to 7.9 percent in the second quarter, reaching 10.3 percent in the third quarter. The company is nearing "the final stage of building infrastr ucture for new business projects," which contributed to this improvement. Hybe also reported that accumulated sales for the year had surpassed 1.5 trillion won by the third quarter, indicating a potential for achieving 2 trillion won in annual sales for the second consecutive year.By sector, sales from "direct participation" activities by its artists, which include digital music and albums, concerts, commercials, and appearance fees, reached 323 billion won, representing an 18.8 percent decrease from the previous year. The decline in digital music, albums, and concert revenue was particularly pronounced. However, "indirect participation" activities, such as merchandising, licensing, content, and fan community platforms, generated 204.9 billion won, showing a 31.8 percent increase. Content sales alone surged by 63.6 percent, significantly contributing to the growth."There was a global event, the Olympics, so no albums were released during this period," the company explained, pointing out the impact on the "direct participation" category. The ongoing dispute with Min Hee-jin was also identified as a contributing factor to the decline. In April, Hybe launched an audit of ADOR, accusing Min of attempting to seize control of the sublabel and its flagship group, NewJeans. Min denied these claims, arguing that the audit was retaliatory due to her earlier criticism of another of Hybe's sublabel's new girl group, ILLIT, for allegedly imitating NewJeans. Subsequently, ADOR's board, largely composed of Hybe executives, dismissed Min from her CEO role.The conflict escalated to court, where on Oct. 29, a judge dismissed Min's injunction seeking reinstatement. The following day, ADOR's board voted against her return, intensifying the internal strife that is impacting Hybe's business outlook.Despite these challenges, Hybe maintained solid earnings, bolstered by strong album sales from Enhypen and Boynextdoor, NewJeans' milestone of achieving a million-seller with its debut Japanese single, and positive chart performance s by BTS member Jimin and Le Sserafim. Hybe anticipates an improvement in sales from "direct participation" activities in the fourth quarter, with expected new album releases from BTS' Jin, Enhypen, Le Sserafim, and Boynextdoor.In October, Seventeen launched its new world tour in Goyang, just north of Seoul, following record-breaking sales of 3.16 million copies of its 12th EP, "Spill the Feels," within the first week of release.During a conference call on third-quarter earnings, Hybe CEO Lee Jae-sang pledged to "calmly continue" the business with a focus on "fundamental values." He also emphasized the company's commitment to supporting the continued growth of NewJeans..
- October 12, 2026
