On November 7, YG Entertainment announced that its consolidated operating profit for the third quarter of this year reached KRW 31.1 billion (approximately $23.8 million USD), a significant turnaround from the loss of KRW 3.6 billion recorded in the same period last year. Revenue rose to KRW 173.1 billion, marking an increase of 107.2% year-on-year. Net profit also moved towards a profit, reaching KRW 24.4 billion.
Although the results fell slightly short of market consensus forecasts – compiled by financial data firm FnGuide – which estimated operating profit at KRW 33.9 billion, revenue at KRW 198.4 billion and net profit at KRW 25.2 billion, YG pointed out that the third quarter revenue figure is the highest ever for the company in any third quarter.
YG attributed this success to the release of new albums and streaming results of TREASURE AND MONSTER CHILDalong with global tour revenues from BLACKPINK, TREASUREAND MONSTER CHILD. “We plan to further expand our artists’ businesses to build the foundation for structurally sustainable growth,” the company said.
At the heart of this third-quarter rebound is BLACKPINK. Their world tour, which began in July and runs until January next year, includes 33 shows and is expected to attract more than 2 million attendees. While details for further concerts have not been released, each show is estimated to attract around 60,000 fans, potentially continuing to positively impact YG’s earnings in the first half of next year.
According to Hana Securities analyst Lee Ki-hoon, performance results already include two stadium shows in Korea and 13 stadium stops across North America. It also predicted that merchandising (MD) sales would reach record highs during this period.
Sources: Daum
