Photo Credit: BTS by AJEONG_JM / CC by 4.0
Hybe saw a nearly 40% plunge in profit without BTS, but the company expects that to change this year with the return of the Korean superstars.
Korean music giant Hybe released its 2024 earnings report, dubbing the year the greatest revenue-generating year to date. That’s in spite of a nearly 40% plunge in operating profit due to major investments in Weverse and the BTS hiatus.
On Tuesday, Hybe reported generating 2.25 trillion Korean won ($1.58 billion) for the fiscal year of 2024, up 4% from the year previous. But operating profit was down 38% from 2023, primarily due to BTS’ temporary break, “a shift in the artist sales mix due to new debuts, and strategic investments in infrastructure and new growth businesses like Weverse and gaming,” the company said.
Hybe’s total revenue for Q4 2024 clocked in at 725.3 billion won ($507.5 million), with total operating profit for the quarter hitting 65 billion won ($45.5 million).
The company says it expects operating profit to bounce back in 2025 “through the comeback of 21st century icons BTS.” Further, investments into its social media and fandom platform, Weverse, will be reflected in performance results from January 2025.
BTS has been on hiatus since 2023, as its members complete South Korea’s mandatory military service. The remaining five members are expected to complete their service by June, leaving fans excited at the thought of the band reuniting in the second half of 2025.
In BTS’ absence, the global success of similar group acts like SEVENTEEN, ENHYPEN, and NewJeans boosted Hybe’s revenue through sales of promotions with direct artist involvement to 1.45 trillion won ($1 billion). SEVENTEEN sold over 10 million albums between fiscal 2023 and 2024, becoming the only K-pop act to achieve such a feat.
Meanwhile, Hybe has worked hard to expand Weverse from its K-pop-exclusive roots to host a wide array of mainstream artists, including Ariana Grande, Dua Lipa, and Megan Thee Stallion. Users in North America increased 26% last year, with users in Brazil growing by 21%, 14% in Mexico, 22% in Japan, and in Taiwan by an impressive 54%.