With Booming Third-Quarter Profits, K-pop Agencies Are Back In Business. New albums and the revival of offline concerts gave K-pop management companies a huge boost in the third quarter. Home to K-pop acts like Twice and Stray Kids, JYP Entertainment is the second largest K-pop agency after HYBE and had a 35.8 per cent increase in net earnings from July to September compared to the same time last year.
Its net profit of 22.5 billion won ($17 million) was higher than the 21 billion won market consensus estimated by FnGuide. In the third quarter, sales increased by 66.2% to 95.1 billion won, much exceeding the 85.8 billion won projection made by industry analysts.
Merchandise sales, which accounted for 4 billion won of JYP Entertainment’s total 7 billion won in concert earnings, were up 469 per cent from the same time the previous year. This year has seen a lot of performances and albums by JYP artists, especially from girl groups.
Since last April, Stray Kids have been performing around the world for the second time. On Sunday, they concluded their show in Jakarta. In February of next year, the band will once again head out from Bangkok for stops in Singapore, Australia, and the United States.
The following four acts will make their debut in 2019: in South Korea, China, the United States, and Japan. Increased music consumption due to relaxed social distancing rules contributed to SM Entertainment’s net earnings skyrocketing by 129.5 per cent over the period of July to September compared to the previous year.
Vespa, Red Velvet, NCT, and Exo are all signed to the label. During the third quarter, it posted a net profit of 29.2 billion won ($22.1 million), far exceeding the 18.7 billion won that was predicted by analysts. Its revenue of 238.1 billion won (65.4 per cent more than the third quarter of 2021) also topped projections.
From July through September of last year, ticket sales for concerts only totalled 1.9 billion won. In addition, album and music sales grew by 14.5% year-over-year to 72 billion won. On August 20th, SM Entertainment hosted its first offline concert in the SMTown series since 2017 with its artists at SMCU Express @Human City Suwon.
The boy band NCT Dream and the singer Onew both performed as solo acts. Seulgi, Chen, and BoA are just a few of the artists releasing new music this quarter. On November 28th, Red Velvet will release “The Reve Festival 2022 – Birthday,” their eighth extended play.
Blackpink and Big Bang’s label YG Entertainment saw a net profit increase of 2,633% to 15.4 billion won in the third quarter of 2018 compared to the same period last year. Even though sales were up 33.4% from the previous year, they fell short of the average estimate of 120.4 billion won, coming in at 114.7 billion won instead.
Albums accounted for 19.4% of the sum, followed by digital content at 18.3%. According to YG Entertainment, it often takes a quarter or two to balance overseas finances, thus no concert money was computed despite its boy band Winner performing six times in Japan in July.
Revenue is expected to increase in the fourth quarter because of the publication of Blackpink’s new album on September 16. This album is expected to generate significant income for the group, which analysts say will be accounted for by the end of the year.
However, Korea Investment & Securities analyst Park Ha-Kyung expressed concern that the firm’s reliance on the female group could pose a threat to the business. The company did not reveal how much of its income came from Blackpink, but estimates place the figure at roughly 61%.
K-pop agencies had a blow-out third quarter with new albums and the resumption of offline concerts. https://t.co/381sMZhYc5
— The Korea JoongAng Daily (@JoongAngDaily) November 14, 2022
According to Park, “Blackpink accounted for 92% of YG Entertainment‘s album sales in the third quarter,” while Treasure’s album sales “showed reverse growth,” falling from 540,000 for its prior release to 400,000.
Even while the company was formerly valued highly owing to its North American market domination, such success now appears to be limited to Blackpink alone. The future of the company’s stock values hinges on the development of Treasure and the performance of the newly-debuting girl group.
Baby Monster is the working title for the new female group Park mentioned, which will make its debut sometime in 2019. HYBE surpassed expectations last week when it posted a 91 per cent year-over-year increase in net profit for the third quarter. The nine-month net income of 94.9 billion won far exceeded the predicted 47.2 billion won.