(LEAD) Hybe posts nearly 700 bln won in Q1 revenue on BTS′ comeback

▲ K-pop supergroup BTS is seen in this photo provided by BigHit Music and Netflix. (PHOTO NOT FOR SALE) (Yonhap)
▲ This photo taken April 29, 2026, shows the logo of K-pop giant Hybe on the company's headquarters in Seoul. (Yonhap)

(LEAD) Hybe-Q1 earnings

(LEAD) Hybe posts nearly 700 bln won in Q1 revenue on BTS' comeback

(ATTN: UPDATES throughout with press release, conference call, more details of regulatory filing)

SEOUL, April 29 (Yonhap) -- Hybe, the company behind K-pop megastar BTS, posted a sharp rise in first-quarter revenue on the back of the band's comeback, but swung to an operating loss due to a one-off accounting cost tied to stock-based compensation for employees.

The company said in a regulatory filing Wednesday that its January-March revenue rose 39.5 percent year-on-year to 698.3 billion won (US$468 million), marking a record high for a first quarter, which is typically a slow season for the music industry.

Operating loss came to 196.6 billion won, compared with a profit of 21.6 billion won a year earlier, missing the market consensus of 42.6 billion-won profit compiled by Yonhap Infomax, the financial data service of Yonhap News Agency. Net loss stood at 156.7 billion won.

Hybe said the loss reflected a 255 billion-won one-off expense after Chairman Bang Si-hyuk, the company's largest shareholder, granted shares from his personal holdings as employee incentives. The firm said the cost did not involve an actual cash outflow.

Excluding the one-off item, adjusted operating profit was 58.5 billion won.

Revenue from activities involving "direct participation" from its artists, including album and music sales, concerts, and advertising, rose 25.2 percent on-year to 403.7 billion won. Album and music sales, in particular, nearly doubled to 271.5 billion won, driven by the sales of BTS' fifth full-length album, "Arirang," released last month.

"The album sold 3.98 million copies on the first day of its release alone. Data from global music data analytics firm Luminate showed the LP sold 208,000 copies in a single week, the highest for any group since tracking began in 1991," Hybe said.

The album topped the U.S. Billboard 200 chart for three consecutive weeks, the first for a K-pop act, while its lead single, "Swim," became the band's seventh No. 1 on the Billboard Hot 100 chart.

Other artists under Hybe, including Enhypen, Katseye and Cortis, also contributed to the growth, according to the company.

Revenue from artists' "indirect participation," which includes merchandise, licensing, content and fan club memberships, rose 65.5 percent to 294.7 billion won, supported by strong demand for tour-related goods and presales for the ongoing BTS world tour.

Hybe said it expects revenue and operating profit to increase in the second quarter, driven by new releases from multiple groups, including Tomorrow X Together, TWS and ILLIT, and the reflection of sales from the BTS tour.

CEO Lee Jae-sang said in a conference call that sold-out shows at stadiums with more than 50,000 seats proves BTS' global appeal. "The strong fan turnout across North America, Europe and Asia has demonstrated the global expansion of K-pop," he added.

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