On November 7, YG Entertainment announced that its consolidated operating profit for the third quarter of this year reached 31.1 billion KRW (approximately $23.8 million USD), a significant turnaround from the 3.6 billion KRW loss recorded during the same period last year. Revenue surged to 173.1 billion KRW, marking a 107.2% increase year-on-year. Net income also shifted to a profit, hitting 24.4 billion KRW.
Although the results fell slightly short of the market’s consensus forecast—compiled by financial data firm FnGuide—which estimated operating profit at 33.9 billion KRW, revenue at 198.4 billion KRW, and net profit at 25.2 billion KRW, YG emphasized that the Q3 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 achievements by TREASURE and BABYMONSTER, along with global tour revenues from BLACKPINK, TREASURE, and BABYMONSTER. “We plan to further expand our artists’ activities to build a foundation for structurally sustainable growth,” the company stated.
At the core of this Q3 rebound is BLACKPINK. Their world tour, which began in July and runs through January of next year, comprises 33 shows and is expected to draw over 2 million attendees. Although details for additional concerts have not been disclosed, each show is estimated to attract around 60,000 fans, potentially continuing to positively influence YG’s earnings into the first half of next year.
According to Hana Securities analyst Lee Ki-hoon, the performance results already include two stadium shows in Korea and 13 stadium stops across North America. He also projected that merchandising (MD) sales would hit record highs during this period.
Sources: Daum
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