K-Pop Hybe Reports Record Revenue for 2024
The K-Pop Hybe giant announced record revenue for 2024, but the company experienced net losses amid rising costs and challenges in its registered music segment.
In the latest income report, Hybe recorded earnings of KRW 2.2545 trillion or 1.654 billion US dollars at the average exchange rate for 2024, marking an annual increase of 3.5%.
This marks the third consecutive year that Hybe’s earnings surpassed $1 billion and the second consecutive year above the KRW 2 trillion threshold.
Profit Decline and Cost Increases
However, the operating profit saw a decline of 37.5%, dropping to KRW 184.82 billion (135.55 million dollars), while the company reported a net loss of Circle 3.38 billion (2.48 million dollars), in contrast to a net profit of 183.45 billion KRW in 2023.
Operating costs surged by 9.9% year-on-year, reaching KRW 2.069 trillion (1.518 billion dollars).
“The decline in profitability was primarily related to BTS‘s ‘temporary break’, a shift in sales dynamics with new debuts, and strategic investments in infrastructure and growth areas like Weight and gaming,” Hybe stated in a message to shareholders on Tuesday (February 25).
BTS, the largest K-POP act globally in recent years, has been on hiatus as its members complete mandatory military service. Two members have finished their service, with the remainder expected to conclude by the end of this year.
HYBE anticipates “growth in operating profit” this year as BTS resumes activities, alongside “sustainable growth from other artists and enhanced artist management capabilities in global offices.”
HYBE’s “Artist-Direct” segment, which includes recorded music, concerts, advertising videos, and artist performances, generated KRW 1.445 trillion (1.06 billion dollars), marking a 1.8% year-on-year decline.
However, concert revenue increased by 25.6% year to KRW 450.87 billion (330.69 million dollars), which was insufficient to offset the 11.3% year drop in recorded music sales, amounting to KRW 860.96 billion (631.46 million dollars).
The “Artist-Activism” segment, encompassing merchandising, licensing, and the Weverse Superfan platform, recorded an income growth of 14.5% year to KRW 809.29 billion (593.56 million dollars).
Monthly active users on Weverse grew to 9.4 million in the 4th quarter of 2024, down from 9.7 million in the previous quarter, but up from 9.2 million a year earlier. Nevertheless, the recent MAU figures fell short of the peak of 10.6 million reached in the 3rd quarter of 2023.
Despite this, Hybe expects an increase in Weverse income starting in January of this year after the free trial period for its premium service concludes.
Hybe also anticipates an “improvement in profitability in Weverse, Supertone, and HYBE IM as these required initial investments for medium to long-term growth.”
“The company … expects to see an increase in profitability in Weverse, Supertone, and Hybe IM, which required initial investments to advance medium to long-term growth.”
Hybe
In the fourth quarter of 2024, Hybe reported income of KRW 725.32 billion (519.04 million dollars), reflecting a year-on-year increase of 19.2%.
The artist segment experienced a 15.1% year increase in revenue to KRW 481.42 billion (344.51 million dollars), with a stunning 111% year increase in concert revenue, which more than compensated for the 8.8% year decline in recorded music sales.
The artist-vault segment generated KRW 243.90 billion (174.54 million dollars), reflecting a year-on-year increase of 28.0%. Fan Club revenues, which include Weverse, grew by 6.5% year, while merchandising and licensing surged by 156.0% year.
For the 4th quarter, Hybe recorded an operating profit of KRW 65.34 billion (46.76 million dollars), down 26.7% year, and reported a net loss of Circle 26.02 billion ($ 18.62 million) for the period.
Hybe also noted in its income report that Supertone Shift, an AI-driven tool, attracted 350,000 subscribers since its launch in the second quarter of 2024.
Looking ahead to 2025, the company emphasized its strategy of a “multi-house, polyhedron” model that “integrates the company’s extensive knowledge of the K-POP framework with local cultures.”
As MBW previously reported, Hybe aims to export the K-Pop methodology to music markets outside South Korea. To this end, it has collaborated with Universal Music Group and GEFFEN Records to launch a new international girl group, Katsi, which debuted in June 2024.
“Katsi had the best debut year with their double title track Touch, spending two weeks on Billboard‘s Bubbling Under Hot 100 chart and 13 consecutive weeks on Billboard‘s Global Excl. US chart, demonstrating that the K-Pop Hybe methodology can succeed in the U.S. music market,” the company stated on Tuesday.
Earlier this week, Hybe announced another partnership: Chairman of Hybe Bang Si-Kyuk is joining forces with the CEO of Hybe America Scooter Braun and Ryan Tedder of ONEREPUBLIC fame to create a new boy group, with auditions for potential members currently open.
In its report to shareholders, Hybe mentioned that its Latin music division, Hybe Latin America, “will launch a new group for the region this year, tailored to the culture and fandom of the local market.”
HYBE revenue soared to an all time high of $1.65bn in 2024, but operating profit dropped 37.5% YoY
