'%20x='0'%20y='0'%20height='100%25'%20width='100%25'%20%0A%20%20%20%20%20%20%20%20%20%20xlink%3Ahref='data:image/jpg;base64,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'%3E%3C/image%3E%3C/svg%3E)
K-pop's popular boy bands SEVENTEEN and ENHYPEN made waves as reports surfaced regarding their new respective world tours. HYBE Corporations released its financial report for the first quarter (Q1) of 2024 on May 2, 2024. Due to BTS' absence caused by their ongoing military enlistment, the company witnessed a profit decline of 72.6%.
According to a report by Hyundai Motor Securities on May 3, 2024, given the extent of the first-quarter profit decline, a negative growth rate of 5.7% in annual sales and 4.7% in operating profit is expected. As a result, there is a high likelihood that major HYBE artists will embark on extensive tours in the upcoming second and fourth quarters.
Reports surfaced of HYBE's boy bands ENHYPEN and SEVENTEEN to go on a second world tour in the second half of 2024. According to News Claim, a South Korean media site, expert Kim Gyu-yeon remarked that SEVENTEEN and ENHYPEN tour dates will be dropped in late May 2024, and KATSEYE will take the lead in local IP revenue generation.
Trending
HYBE's revenue increase depends on SEVENTEEN and ENHYPEN's setting sail for a second world tour in 2024
In 2024, HYBE reported that 160 concerts are planned, and each performance will be larger than before. The success of KATSEYE in the American market, which is expected to make its debut in the third quarter, and SEVENTEEN & ENHYPEN's enormous scale respective tours in the second half of the year were both mentioned as potential signs of financial improvement.
For the unversed, KATSEYE is an American girl group under HYBE and Geffen Records which was formed through the reality show Dream Academy. Meanwhile, the sales volume of over 13.3 million album copies of SEVENTEEN's new release 17 IS RIGHT HERE has received excellent reviews and in the second quarter brought in 910,000 visitors, matching the number from the same time last year.
On April 26, 2024, HYBE saw a negative trend in its shares that reached as low as 5.75%, trading at 199,800 won ($145) apiece, down more than 50% from its peak in November 2021. The ongoing feud between the billion-dollar K-pop company and its subsidy ADOR has further taken a massive hit on HYBE, making it lose $627 million in the market, reportedly.
On May 2, 2024, HYBE reported first-quarter sales of 360.9 billion won ($271.5 million), the lowest since the company's 285 billion won ($214.4 million) first-quarter 2022 revenue, which was down 12.1% year over year. The operating profit dropped by 72.6% from the same time last year to 14.4 billion won ($10.8 million) which is caused massively because of BTS' inactivity.
Meanwhile, Q1 2024 Earnings Report published by HYBE, the total revenue stands at 360.9 billion won ($266.2 million) compared to 608 billion won ($448 million) in 2023 and 537.8 billion won ($397 million) in 2022. It saw a year-over-year decrease of 12.1% and a quarter-over-quarter decline of 40.7% in 2024 compared to last year.
Operating profit dropped to 143 billion won ($105 million) in 2024 compared to 891 billion won ($671 million) in 2023 despite SEVENTEEN's Follow tour and ENHYPEN's FATE Plus tour. In 2024, HYBE faced a sharp decline of 83.9% in quarter-over-quarter operating profit.
Meanwhile, ENHYPEN wrapped up their FATE Plus tour on May 3, 2024, with their last concert at the USB Arena in New York. Simultaneously, SEVENTEEN has been touring Asia as well, with their last concerts on May 25 and 26, 2024, at Yokohama's Nissan Stadium in Japan. The 13-piece group began their Asia tour on July 21, 2023, at Gocheok Sky Dome in Seoul, South Korea.
Meanwhile, the most recent quarter for HYBE was comparable to the fourth quarter of 2021, when the firm held concerts for the first time following COVID-19 limitations that closed down the touring industry, with concert revenue of 45.3 billion won ($34.1 million).
However, BTS frontman Kim Namjoon's upcoming second solo album, Right Place, Wrong Person, will be released on May 24, 2024. With this new release and the return of BTS' eldest member Kim Seokjin from the military, who will also release his debut solo album in the second half of 2024, financial analysts and HYBE are certain to see positive revenue growth.
