HYBE shrugs off NewJeans controversy with 500 billion KRW Q1 revenue; anticipation builds for BTS’ return

HYBE Corporation has achieved record-breaking first-quarter sales, surpassing 500 billion KRW for the first time, despite the ongoing legal conflict between its subsidiary ADOR and NewJeans.

On April 29, HYBE revealed its consolidated financial results for the first quarter of 2025, reporting total sales of 500.6 billion KRW. This figure marks a 39 percent increase compared to the same period in 2024, establishing a new benchmark for the entertainment powerhouse. Traditionally, the first quarter is seen as a slow period in the industry due to fewer comebacks and limited concert activity following year-end promotions. However, HYBE defied industry trends, largely owing to the aggressive global activities of its top-tier artists.

Driving this growth were world tours and solo activities from artists across HYBE’s expansive roster, including BTS’ J-Hope, SEVENTEEN, TXT, ENHYPEN, and BOYNEXTDOOR. As more of HYBE’s acts reached a scale where they could launch successful world tours, the resulting concert revenue surged to 155.2 billion won, more than triple the earnings from the same quarter last year.

Direct participation sales, which include albums, performances, and endorsements, accounted for approximately 64% of the company’s total revenue, totaling 322.5 billion won. While album sales saw a minor decline, the massive spike in tour revenue helped offset any losses.

Meanwhile, indirect sales, such as merchandise, licensing, digital content, and fan club subscriptions, reached 178.1 billion won, or 36% of total earnings. The merchandise and licensing division stood out, with sales skyrocketing by 75% year-over-year to 106.4 billion KRW. Character-themed items and exclusive tour merch, especially those tied to HYBE’s IP-based artist brands, proved to be massive global hits.

HYBE also reported a significant boost in operating profit, which reached 21.6 billion KRW, up by 50% compared to the same quarter last year. Additionally, HYBE is gearing up for major growth over the next two years, with the remaining BTS members set to return from military service. The agency anticipates a 45% increase in revenue and a 49% rise in profit by 2026, primarily fueled by BTS’ comeback.

However, not all is smooth sailing for the company. Amid this financial success, a storm continues to brew within its walls as ADOR, the label behind NewJeans, remains embroiled in a highly publicized contract dispute with the group. NewJeans has sought to terminate its exclusive contract with ADOR, citing broken trust and mismanagement.

In response, ADOR has asserted that the contract remains legally binding and cannot be dissolved unilaterally. Recent court rulings have leaned in favor of ADOR, temporarily barring the members of NewJeans from engaging in independent activities, including signing commercial deals or promoting outside the agency’s purview.

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