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On July 16, 2024, the South Korean media outlet Hankyung reported that YG Entertainment had suffered a reduction in their sales and performance following BLACKPINK's absence. The publication reported that the agency has been suffering an ice age as it no longer has Intellectual Property (IP) to fill the emptiness left by BLACKPINK, the group responsible for driving the traffic, sales, and performance of the label.
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In December 2023, YG Entertainment and four members, including Jennie, Jisoo, Lisa, and Rosé, renewed their exclusive contract for the band activities. However, they declined to sign individual contracts with the agency and took the command for their solo endeavors in their own hands. Hence, the outlet stated that due to the uncertainty of group activities, the agency has been witnessing a decrease in sales, performance, and stock price.
The researchers predicted that YG Entertainment's performance and sales would get better with the resumption of BLACKPINK's group activities
According to Kim Hye-young, a talented researcher at Daol Investment and Securities, YG Entertainment, has suffered a decline of 35.8% in its consolidated sales for the second quarter of 2024 in comparison to the same period in 2023. Meanwhile, the operating profit stood at KRW 300 million, a reduction of 98.9% from the last year.
The researcher evaluated the decrease in YG Entertainment's stock price due to the drought of BLACKPINK activities. She lowered the potential stock price for the agency from 55,000 won to 46,000 won. Presently, the stock price closed at 36,750 won, which has fallen almost 3.03% (1,150 won) from the previous day.
It should be noted that the stock price, which increased to 97,000 won for YG Entertainment in May 2023, has declined by 62% and stood at 36,000 won within one year. Kim Hye-young suggested that the agency's performance indicators in the second quarter of 2024 would depend on the album sales of BABYMONSTER and TREASURE's concert ticket sales.
She also concluded that due to BLACKPINK's absence, the agency could expect better performance and sales next year and stated (according to the translated quote):
"YG Entertainment's main performance in the second quarter will be the album sales of BABYMONSTER and the concert sales of Treasure. There were only two idol IPs that YG Entertainment could promote this year, including the rookie BABYMONSTER, which wasidisadvantageous in terms of profit. We should expect better performance next year rather than this year."
She also suggested that since YG Entertainment has been facing delays in replacing BLACKPINK as their IP generation, the improvement in performance, sales, and BABYMONSTER's success were much-needed requirements. The researcher also suggested the agency get new IPs, which would increase the growth of the production system.
Meanwhile, another renowned researcher from Hyundai Motor Securities, Kim Hyun-yong, stated that the key to recovering the agency's sales and performance lies in the full-fledged resumption of group activities of BLACKPINK and the rookie group BABYMONSTER should follow the legacy of the former.
In recent news, Lisa has made a solo comeback with Rockstar under LLOUD.
