“Where did the money go?"— Netizens react as HYBE reports Q4 deficit amid ongoing controversies and BTS’ hiatus

On February 25, 2025, South Korean media outlet Yonhap News reported HYBE’s latest financial earnings. It stated a 37.5% drop in operating profit from the previous year, despite a 3.5% increase in overall sales.

The entertainment powerhouse, home to BTS and several other major artists, recorded 184.8 billion won in operating profit, while net income took a major hit, turning into a deficit of 3.4 billion won.

The fourth-quarter earnings were 65.3 billion won, falling 23.7% short of market expectations. This sparked conversations online about the company’s financial health.

The report highlighted HYBE's growing challenges, including rising costs from the debut of new groups, infrastructure investments, and a lack of BTS group activities due to military enlistments.

The label’s revenue from album sales and digital music declined, while concert earnings increased significantly, offsetting some losses. Despite these numbers, netizens expressed skepticism about where the company's profits were going, considering its reputation as South Korea’s leading entertainment company. An X user, @everywonblink wrote,

"It's weird how hybe sold more than their previous quarter, debuted no new group, barely did anything ground breaking but lost a major chunk of their profit and had one of their worst quarters EVER. Where did the money go?"

Many fans questioned whether the company was efficiently managing its finances, given the sharp profit drop despite continued high revenue.

"nah cuz losing 30 billion in three months is actually insane," an X user wrote.

"HYBE has lost their credibility and it shows," a netizen remarked.

"Must have spent it on those journalists they took to golf and on the pr team to defame innocent people," a person added.

"I never would have thought that I would be happy about the decline in shares of such a company. But.. Everything is changing and hybe has once again f*cked up," a user wrote.

Others believe the cause behind the deficit could be BTS' group hiatus or the ongoing dispute of the label with NewJeans (now NJZ).

"They are also pumping up articles about Hybe recovering profit when BTS will make a comeback," a netizen mentioned.

"Only bts comeback can save the company now. HYBE, this is what you are without BTS...," another user commented.

"KARMA JEANS WORK IT NOW," an X user wrote.

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HYBE’s Q4 financial performance and future prospects

The earnings breakdown showed mixed results across different sectors. While performance-related revenue surged by 25.6%, reflecting strong ticket and merchandise sales from affiliated artists, album and digital music sales saw an 11.3% decline.

Merchandise sales, including items related to BTS, Seventeen, and TXT, rose by 29.1%, amounting to 420 billion won. However, costs related to launching new artists, expanding Weverse, and establishing HYBE Latin America contributed to the profit decline.

The absence of BTS' group activities since 2022 was cited as a major factor impacting earnings. Since five out of seven members are still enlisted in the military, the company has relied on solo projects and other groups to maintain momentum.

As of now, only Jin and j-hope have completed their service, with RM, Jimin, V, Jungkook, and Suga set to return in June 2025. With BTS' full comeback expected later in the year, the label anticipates a significant recovery, forecasting a 20% increase in sales and a 68.6% rise in operating profit for 2025, according to FnGuide.

Additionally, the company has placed strong bets on its Weverse digital membership model, new gaming ventures, and AI-driven audio technology, aiming to secure long-term growth beyond reliance on BTS.

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As discussions continue, all eyes are on BTS' long-awaited return and how the label plans to navigate its business strategy in the coming year.