BTS Fans debate as HYBE America Inc. under CEO Scooter Braun has a net loss of $30 million USD in the first three quarters of 2023

On November 14, 2023, news broke out that HYBE America—a subsidy under HYBE Corporation, home of BTS—has incurred a loss of $30 million USD in the first three quarters of 2023. As per an X user @FJimindata, HYBE America, which is under the leadership of Scooter Braun has ranked first in the net losses for the financial year of 2023.

Since then, netizens have been debating about the news that surfaced on the social media platform of Twitter (now X) as another X user, @fairyJiminnie9 commented, "Karma is real."

The subsidiary was once known as Big Hit America. After Big Hit America was rebranded, HYBE Corporation acquired all of its shares for ₹1.7 trillion ($1.5 billion) in 2021. Transforming it into a fully-owned subsidiary that is now known as HYBE America. QC Media Holdings, Inc. and Ithaca Holdings LLC are subsidiaries of HYBE America.

Additionally, Quality Control (QC) Media Holdings—an Atlanta-based entertainment corporation including music, sports, movies, and television—has been bought by HYBE America. Acts including Migos, Lil Yachty, City Girls, and Lil Baby are under the umbrella of QC Media Holdings.

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BTS Fans debate about HYBE America's contribution to the Q3 revenue of HYBE Co.

Hybe Corporation announced its third-quarter net profit on November 2, 2023, which increased by 5.9% compared to the previous year to 98.6 billion won (US$73.3 million), as reported by Yonhap News. In a regulatory statement, the corporation stated that its operational profit for the quarter was 72.7 billion won, up from 60.6 billion won the previous year.

Although, taking into account both physical albums and internet streaming and downloads, musicians such as BTS' V, BTS Jungkook, Seventeen, TOMORROW x TOGETHER, and NewJeans showcased their selling prowess in Q3 of 2023, incurring gross profit.

The profits surpassed forecasts by the market. An analyst study conducted by Yonhap Infomax, the financial data company of Yonhap News Agency, found that the average projection of net profit was 65.2 billion won.

Meanwhile, an X user, @taetaeisabear tweeted refuting claims made by the account @FJimindata and wrote, "Since when did they become a hybe America stock reporter? And why are the akgaes in the qrts tryna act smart like they understand how stocks work?"

Meanwhile, as reported by Billboard on November 1, 2023, PST, HYBE stated that BTS members had several successful solo releases throughout the quarter. BTS V's album Layover sold 2.1 million copies in the week after its release on September 8, 2023. Released on July 15, 2023, BTS J-Hope's Jack in the Box peaked at No.1 on the Tunes chart across 49 markets.

Agust D, better known as BTS member Suga, gave 28 performances of D-Day in ten locations around Asia and North America. With 264.1 billion won ($201 million) in music sales, HYBE outperformed its second quarter's 245.9 billion won ($187 million) by 7.4%.

This was a 104.4% increase over the same period compared to 2022 where profits dropped by 13% from the second quarter's 512.2 billion KRW ($354.9 million) in revenue. While concert revenue decreased 44.8% from the previous quarter in 2023, it increased 83.9% year over year to 86.9 billion won ($66 million). Again, an improvement from 2022 when BTS announced its hiatus due to military enlistment.

Several X users took to the social media platform to share their thoughts:

As per Billboard on November 1, 2023 PST, the hip-hop label Quality Control, situated in Atlanta (now under HYBE), has had a rapid and significant influence. Quality Control, the home of artists like Migos and Lil Baby, single-handedly brought in 19% of HYBE's streaming income during the third quarter of 2023.

Furthermore, the Big Machine Label Group, which was acquired in 2021 when Scooter Braun's Ithaca Holdings was acquired by HYBE Co., made for 27% of the revenue generated via streaming in the third quarter. Additionally, with South Korean labels accounting for 54% of the total in the financial year of 2023, Q3 showed a profit margin, as reported by Billboard.

In 2022, HYBE CEO Park Ji-won mentioned that HYBE is looking for economic potential in Asia for Ithaca's musicians Justin Bieber (Drew House) and Ariana Grande (R.E.M. Beauty). The U.S. artists from Ithaca will join HYBE's Weverse social media platform in 2023 and is expected to increase revenue, as reported by Billboard on November 4, 2022.

Additionally, CEO Park Ji-won had stated that 60–65% of HYBE's income in 2023 will still come from BTS. However, Ithaca Holdings (now HYBE America), will provide the remaining 35–40% of income with the help of its established and up-and-coming artists.

However, an X user, @ijbolingg tweeted, "Armys in the quotes saying scooter has nothing to do with golden while simultaneously getting mad cus we dragging scooter lol like choose a narrative already. And golden was managed by sb projects which is under hybe America whether u like it or not"

Additionally, another X user, @deeplovejm13 tweeted, "We finally know how scooter and ratkook brought down hybe America."

Furthermore, K-pop behemoth HYBE saw a 20.7% increase in third-quarter revenues year over year to 537.9 billion won ($410 million at the average exchange rate for the period), driven by robust sales and a world tour by the group Seventeen, as reported by both Billboard and Allkpop.

In brief, a financial report or statement shows net income or the company's profit after expenditures are deducted from revenues. The ability of a business to generate enough cash flow to cover its operational costs, settle debt, and make investments is gauged by the cash flow statement (CFS).

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Meanwhile, the fourth quarter of 2023 (Q4) is predicted to see HYBE Labels perform even better than its previous three quarters of the year. Particularly in physical album sales, owing to the simultaneous release of four albums of ENHYPEN's Orange Blood, Seventeen's Seventeenth Heaven, TXT's The Name Chapter: Freefall, and BTS Jungkook's GOLDEN.