Hybe, the entertainment company behind BTS, is experiencing a notable surge in its stock price, which increased by 10% on Friday. This rise is attributed to an optimistic third-quarter earnings outlook, with projected revenue reaching 1.5 trillion won ($1.11 billion), a 106% increase year-over-year.
Operating profit is expected to be 172.2 billion won, bolstered by concert revenues anticipated to hit 717 billion won, nearly tripling from the previous year.
The success of BTS' ongoing world tour, which includes 16 stadium shows in North America and eight in Europe, has significantly contributed to this growth, with total concert attendance nearing 3 million, marking a potential quarterly record. Notably, over 70% of concert attendance is now coming from Western markets, highlighting Hybe's expanding international presence.
Despite challenges such as higher royalty payments and initial touring costs for newer artists, analysts believe Hybe can maintain a double-digit operating margin due to the scale of BTS' tour. The report also emphasizes the importance of newer groups like Katseye and Cortis in reducing reliance on BTS, with strong demand for their music and performances.
Overall, the positive earnings forecast and the performance of both established and emerging artists suggest a promising future for Hybe in the competitive entertainment landscape