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'BTS → New Jeans' HYBE, record-breaking sales by activating the multi-label system
HYBE has had a significant effect on the multi-label system.
According to HYBE's operating profit released on the 21st, it achieved an operating profit of 237.7 billion won on a consolidated sales of 1.778 trillion won last year.
Sales grew 42% year-on-year, and operating profit rose 25%. The average annual sales growth rate over the past three years was 49.4%, and the operating profit growth rate was 27.8%, respectively.
Adjusted EBITDA, a gauge of actual cash-generating power, rose 24 percent on-year to 328.8 billion won. The ratio of Adjusted EBITDA to sales was 18.5%. Adjusted EBITDA, which means net operating profit that limits both tangible and intangible amortization costs and equity method gains and losses without cash outflow, has increased by 43% on average over the past three years.
On a quarterly basis, it recorded consolidated sales of KRW 535.3 billion and operating profit of KRW 51.7 billion in the fourth quarter. Sales in the fourth quarter of last year increased 17% year-on-year, and increased 20% compared to the previous quarter. Adjusted EBITDA in the fourth quarter was KRW 76.8 billion, and the profit margin of Adjusted EBITDA was 14.4%.
This achievement is the result of HYBE Labels artists' all-round activities last year. HYBE Labels artists stood out in the album charts, as well as performances and MDs.
In the case of the album, the performance abroad stood out. In Japan, HYBE artists were the only Korean artists to be listed on the chart among the top 15 artists in annual album sales on the Oricon Chart. Among them, album sales by SEVENTEEN, BTS, and ENHYPEN were notable.
Performance activity was particularly active in the fourth quarter. Thanks to the tour of SEVENTEEN, TOMORROW X TOGETHER, and ENHYPEN, it recorded 64.7 billion won in performance sales in the fourth quarter alone. The scale of these three groups' performances this year is expected to more than double compared to the previous year.
Such various teams were able to engage in independent activities simultaneously because of Hive's multi-label system, which began in 2019. On top of that, Min Hee-jin, CEO of ADOR, who created artist NewJeans, who introduced two million-selling albums within a year of his debut, stood out.
This year, various new artists are also set to make their debut. Producer Zico, who leads KOZ Entertainment, will debut a new boy group in the first half of the year. Pledis Entertainment will also introduce a new boy group consisting of members selected through global auditions within this year. A local girl group audition project in the U.S., which is underway by HYBE and Universal Music Group, is also cruising.
The outline of the BTS's action plan has also been outlined. BTS The members plan to continue their individual activities, and Jimin's solo album will be released in March, and Suga's world tour will begin in April. Other members' activities will also take place soon.
Park Ji-won, CEO of HYBE, said, "Hive is systematically carrying out this by planning detailed activities until the members of the BTS fulfill their national defense obligations and return to the full body." "We plan to provide all-out support for BTS to continue to make a monumental history in the global music industry," he said.
With the acquisition of hip-hop label QC Media Holdings, HYBE is accelerating the advancement of its multi-label strategy in the U.S. as well. Through this earnings announcement, Hive also announced a shareholder return plan to proceed with dividends or treasury stock purchases within 30% of the net profit of consolidated controlling shareholders. To this end, the government plans to propose an agenda to transfer profit reserves at the regular shareholders' meeting, and if the agenda is passed, it plans to start buying dividends and treasury stocks from 2024.
"We will provide transparency and predictability regarding financial performance and profit distribution, and increase Hive's corporate value by attracting a wider range of investors," CEO Park Ji-won said.
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