BTS, SEVENTEEN, NewJeans propel HYBE to 2 trillion won revenue with 43.6 million album sales; report

HYBE Corporation has achieved a record-breaking revenue of 2 trillion won, primarily propelled by an impressive 43.6 million album sales attributed to artists such as SEVENTEEN, BTS, and NewJeans.

By Pratyusha Dash

Updated on Feb 27, 2024 | 09:06 PM IST | 200.7K

SEVENTEEN, BTS, NewJeans (Image Credits- HYBE)

HYBE has made history by becoming the first South Korean entertainment company to surpass an annual revenue milestone of 2 trillion won (approximately 1.54 billion US dollars). This remarkable achievement is attributed to its strong multi-label system and remarkable growth in album sales and concert sectors.

HYBE reaches 2 trillion won in revenue with groups SEVENTEEN, BTS, and NewJeans

On February 26, HYBE revealed its 2023 consolidated revenue, amounting to 2.1781 trillion won, and operating profit, totaling 295.8 billion won. This announcement represents a notable 22.6% surge in sales and a remarkable 24.9% rise in operating profit compared to the previous year. These figures set new records for the company, showcasing a remarkable 3-year compound annual growth rate (CAGR) of 31.7% in sales and 24.7% in operating profit.

These achievements were spearheaded by the endeavors of BTS members, even amidst their military service, and SEVENTEEN, who set a groundbreaking record for K-pop album sales. Additionally, the remarkable performances by the second-year group NewJeans and the successful world tour of LE SSERAFIM also made substantial contributions to the overall growth.

In 2023, HYBE's artists achieved remarkable album sales, totaling 43.6 million units according to Circle Chart, doubling the figures from the previous year. Additionally, they secured an impressive 38% market share on Circle Chart for albums entered. SEVENTEEN notably updated their own K-pop album sales record, reaching a cumulative 16 million albums sold. Moreover, solo albums by BTS members demonstrated their global influence with 8.7 million sales worldwide. Other notable album sales figures include TOMORROW X TOGETHER with 6.5 million, NewJeans with 4.26 million, and ENHYPEN with 3.88 million, all of which were well-received by fans.

Streaming achievements were equally remarkable, with standout performances by various artists. BTS and Jungkook made notable appearances on the Billboard Hot 100 chart, with Jungkook's collaboration 3D featuring Jack Harlow and Standing Next to You gaining attention. NewJeans also made an impact by entering the Hot 100, showcasing their growing popularity. Additionally, LE SSERAFIM's track Perfect Night achieved a significant year-end Billboard chart reversal, further highlighting the diverse success of HYBE's artists in the streaming arena.

In North America, artists under HYBE America's country music label Big Machine Label Group (BMLG) and hip-hop label QC Music continued to demonstrate strong streaming performances. This resulted in a substantial year-over-year increase of approximately 80% in HYBE's digital music sales, amounting to about 300 billion won (approximately 230 million US dollars).

The combined success of album sales and streaming revenue propelled HYBE's record and digital music sales close to 1 trillion won, reaching 970 billion won last year. The remarkable growth in streaming has led to a reclassification of the album category, now encompassing digital sales under the broader term sound source. Furthermore, the post-pandemic effects resulted in a notable 40% increase in concert revenue last year. This growth was driven by a surge in the number of artists performing and total shows conducted, including sold-out tours such as BTS' SUGA, SEVENTEEN's "Follow" tour, TOMORROW X TOGETHER and ENHYPEN's first North American stadium and Japanese dome tours, and LE SSERAFIM's first world tour.

HYBE’s platforms and upcoming debuts generate revenue

The global superfandom platform Weverse has sustained a steady monthly average user (MAU) count of 10 million, largely due to the ongoing addition of both domestic and international artists. The number of artist communities on Weverse saw a significant 72% year-over-year increase, reaching 122 by the end of last year, with Weverse Live sessions also experiencing growth.

Looking ahead, HYBE has ambitious plans for this year, with the debut of numerous artists expected. This will enrich its lineup, with debuts from PLEDIS Entertainment's TWS, I’LL-IT, and KATSEYE, alongside active album promotions from existing HYBE artists set to commence in the second quarter.

Furthermore, HYBE America's management division, Scooter Braun Projects, finalized new contracts last year and foresees substantial revenue growth with the highly anticipated release of Ariana Grande's album later this year.

In addition to its financial report, HYBE unveiled a shareholder value enhancement plan, including a dividend of 700 won per share, totaling 29.2 billion won. This initiative underscores HYBE's dedication to prioritizing shareholder value even during its growth phase.

In a pioneering move, HYBE adopted Supertone's AI audio technology for its earnings report conference call. Utilizing Text-to-Speech (TTS) technology rooted in big data, the company vividly replicated CEO Park Ji-won's voice, garnering attention for its innovative application and ensuring an engaging and immersive experience for participants.

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