Seoul: Hybe reported annual sales surpassing 2 trillion won (US$1.397 billion) for the second consecutive year in 2024, despite BTS' group projects being on hold due to members' mandatory military service. The company's sales were driven by strong performance in albums, music, concerts, and merchandise, marking the highest annual sales since its founding.
According to Yonhap News Agency, Hybe's annual revenue reached 2.255 trillion won, a 3.5 percent increase from the previous year. However, the company experienced a decline in operating profit by 37.5 percent to 184.8 billion won and posted a net loss of 3.4 billion won, a sharp turn from a net profit of 183.4 billion won the prior year.
For the fourth quarter, the company reported a net loss of 26 billion won, with operating profit falling 26.7 percent year-on-year to 65.3 billion won. Sales for the quarter rose 19.2 percent to 725.3 billion won. The operating profit was 23.7 percent below the average market estimate reported by Yonhap Infomax.
Revenue with direct artists' involvement dropped 1.8 percent to 1.445 trillion won, while revenue with indirect involvement rose 14.5 percent to 809.3 billion won. Album and music sales, the largest segment in the artist-direct category, fell 11.3 percent, but concert revenue increased by 25.6 percent. Hybe artists, including BTS, Seventeen, Tomorrow X Together, Enhypen, and NewJeans, held 147 concerts and 25 fan events in 2024, achieving the highest concert revenue in the company's history. Fourth-quarter concert revenue doubled to 188.9 billion won.
Merchandise and licensing revenue in the artist-indirect category increased 29.1 percent year-on-year to a record-high 420 billion won. The decline in annual operating profit was attributed to shifts in artist-specific revenue shares and initial infrastructure investments.
Hybe explained that the absence of BTS' group activities and changes in artists' revenue shares due to the debut of new groups impacted operating profit. Additionally, investments in the U.S. debut of Katseye and costs related to establishing Hybe Latin America affected profit margins.
During a conference call, Hybe CEO Lee Jae-sang noted that BTS' revenue share significantly declined from around 95 percent, with solo albums released during military service not compensating for the lack of group concerts. He estimated BTS' revenue share was likely below 20 percent in 2024.
BTS members Jin and J-Hope have completed their military service and resumed activities, while the remaining members are expected to be discharged by June 2025. Hybe anticipates improved profitability in 2025 with more BTS members returning.
The company also plans to debut new localized K-pop idol groups in the United States, Japan, and Latin America, aligning with its "multi-home, multi-genre" strategy to combine the K-pop system with regional cultures.