Hybe Reports 40% Profit Drop As BTS Members Complete Military Service, Despite Record Revenue
Korean entertainment company Hybe reported a 40% decrease in operating profit for 2024, primarily due to BTS members' military service hiatus and strategic investments in new ventures.
BTS members performing on stage
Despite the profit decline, Hybe achieved its highest revenue year to date, generating 2.25 trillion Korean won ($1.58 billion), a 4% increase from 2023. Q4 2024 revenue reached 725.3 billion won ($507.5 million), with operating profit of 65 billion won ($45.5 million).
Key factors affecting 2024 performance:
- BTS temporary break for military service
- Shift in artist sales mix due to new debuts
- Strategic investments in Weverse and gaming
- Successful performances from other groups like SEVENTEEN, ENHYPEN, and NewJeans
SEVENTEEN notably sold over 10 million albums between 2023-2024, becoming the only K-pop act to achieve this milestone. Artist-involved promotion sales reached 1.45 trillion won ($1 billion).
Weverse platform growth highlights:
- North America: 26% increase
- Brazil: 21% increase
- Mexico: 14% increase
- Japan: 22% increase
- Taiwan: 54% increase
- New mainstream artists added: Ariana Grande, Dua Lipa, Megan Thee Stallion
Hybe anticipates a strong recovery in 2025 with BTS' expected return after completing military service by June. The company also expects to see returns from Weverse investments starting January 2025.
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