BTS Sales Lead HYBE up to 79% Growth

But HYBE --It changed its name from Big Hit Entertainment, March -- BTS' touring business is less dependent on it after it bought Ithaca Holdings. Scooter BraunConglomerate is dominated by women, launched in April. Ithaca Holdings includes SB Projects, an artist management house.

BTS Sales Lead HYBE up to 79% Growth

Justin BieberAndAriana GrandeBig Machine Label Group, and. Ithaca's May 6 results drove a 76.9% rise in revenue to 9.4 billion KRW or $8.2million over the previous quarter of HYBE's "ads performances and management" category.

HYBE diversifies their business by launching WeVerse, an online social platform. It attracted 5.3 million users per month, up 9% on 4.9 million in the previous quarter, and a 3.5million from Q2 2020. The group BlackPink was responsible for 1 million new MAUs in Q2 2021. After integration with V Live, a streaming service that HYBE will purchase following approval by Korea's Fair Trade Commission May, WeVerse MAUs are expected to "significantly increase"

Album sales rose 105.4% to 107 billion KRW ($93.7million) year-over-year and by 96.2% in the last quarter. Tomorrow x Together's album The Chaos Chapter: FREEZE was sold 780,000 copies. This is a 55% increase over its previous album and the highest-ever sales total for a third year K-pop group according to HYBE. Repackaged The Chaos chapter: FREEZE sold 390,000. These pre-orders will count towards Q3 sales.

HYBE Japan will release a multi-national boy band through its slate of titles in the second half of 2021 and early 2022. HYBE's Source Music Group and Universal Music Group will create a new boy group. This will show "K-pop’s complete production system encompassing music, performance, video, and fan communication." CEOPark Ji-wondering about the earnings call.

Since its IPO in October 2020, HYBE has undergone significant transformations. HYBE appointed Park Ji-won as its CEO in July. He replaced founderBang Si-HyukHe is still the chairman of board. Yoon Seok-junBraun and HYBE America are led by BraunJaesang LeeTo become the chief operations officer, Braun moved to the U.S. Braun is still the chief operations officer of Ithaca Holdings.

Tuesday's news revealed that HYBE had bid against CJ ENM and Kakao Entertainment for a near 20% share in Korean entertainment company SM Entertainment. This hybrid business combines record labels and talent agencies with concert production and music production businesses. The founder of SM Entertainment is the largest shareholder. Lee Soo-manHe is selling his stake for $2.2 billion.

March saw HYBE change its name to Big Hit Entertainment. It restructured itself into three segments. Big Hit Music includes the labels BELIFTLab, Source Music and PLEDIS Entertainment. HYBE IP and HYBE 360 include HYBE Edu, Superb, and WeVerse, HYBE’s social media platform.

These metrics are in Korean won (KRW), and can be converted at 1,141.61 won into $1.

Financial metrics:

  • Revenue: 278.6 Billion KRW (244.1 Million) in Q2 2021 -- an increase of 79.3% over 155.4 billion KRW (136.1 million in Q2 2020); up 56.2% for 178.3 Billion KRW (156.2 million in Q1 2021); and up 56.2% relative to 178.3 Billion KRW (156.2 million in Q1 2021).
  • Operating profit: 28.9 billion KRW (Q2 2021) -- 6.2% lower than 29.9 billion KRW (26.2 million) Q2 2020; higher 23% than 22.8 billion KRW (19.9 million Q1 2021); up 23% over 22.8 billion KRW (19.9 million Q1 2021).
  • Net profit: 20.8 Billion KRW ($18.3 Million) in Q2 2021. This is 9.9% higher than 19 billion KRW ( $16.6 million) Q2 2020. It is 8.5% lower than 22.8 billion ($19.9million) Q1 2021.

Revenue streams metrics:

  • Albums: 107 Billion KRW (Q2 2021) -- an increase of 105.4% over 52.1 billion KRW (45.6 Million) in Q2 2020 and up to 96.2% over 54.5 billion KRW (47.7 Mio.) in Qu1 2021.
  • Concerts: 0 KRW Q2 2021 -- down 100% compared to 1.4 billion ($1.2million) KRW Q2 2020; even with the Q1 2021.
  • Management, advertising and performances: 21.6 billion KRW (Q2 2021) -- an increase of 96.5% over 11 billion KRW (9.6 million) Q2 2020; an increase of 76.9% over 12.2 billion KRW (10.7 million Q1 2021); and up 76.9% for 12.2 billion KRW (10.7 million Q1 2021).
  • Merchandise & licensing: 50.1 billion KRW (433.9 million) in Quarter 2 2021 -- 12.5% lower than 57.2 billion KRW (50.1 million) in Quarter 2 2020; 22.7% lower than 64.8 billion KRW (56.7 million) Q1 2021.
  • Content: 91.3 Billion KRW (or $80 Million) in Q2 2021 -- an increase of 236.9% over 27.1 MKRW ($23.7M) in the Q2 2020, and up 145.6% over 37.2 Billion KRW (32.6 million) for Q1 2021.
  • Fan clubs and other: 8.6 Billion KRW (7.5 MILLION) in Q2 2021 -- an increase of 29.8% over 6.6 Billion KRW (5.8 MILLION) in Q2 2020, but down 10.8% from 9.6 Billion KRW (8.4MILLION) in the Q1 2021.

Additional information available from the earnings call

  • BTS 2021 Muster Sowoozoo was an online fan gathering to celebrate the 8th Anniversary of the original BTS album. It attracted 1.33 Million viewers from 195 Countries over two days.
  • In Q2, nine artists joined WeVerse. the reverse had 18 artists in Q1.
  • HYBE plans to release a brand new game that was created by an in-house development team in the early or middle of 2022.

Stock market:

  • Market capitalization as of August 5, 2021: $11.6 trillion KRW ($10.2 Billion).
  • Change in HYBE's share prices from year to date: 88.8%

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