YG Entertainment's Q3 Operating Profit Falls 56.8% to 13.5 Billion Won, but Rises 22.7% From Q2
YG Entertainment reported third-quarter operating profit of 13.5 billion won on Nov. 9 KST, down 56.8% from a year earlier on tour costs, though revenue and profit both grew 22.7% from the second quarter.
YG Entertainment's profit more than halved from a year ago in the third quarter. The agency disclosed on Nov. 9 KST preliminary consolidated operating profit of 13.5 billion won, down 56.8%, on revenue of 156.7 billion won, down 9.4%. Net profit dropped 73.8% to 6.4 billion won.
YG pointed to a high base from last year, when tours by artists including BLACKPINK boosted results, plus BIGBANG's world tour operating costs and distribution fees. Yonhap reports the profit came in 28.9% below the market forecast of 18.9 billion won.
The quarter still improved on the one before it. Revenue and operating profit each grew 22.7% from the second quarter, driven by concert revenue and merchandise from major world tours, YG said. BABYMONSTER are on their second world tour 'CHOOM' with 31 shows in 18 cities, and TREASURE finished a 22-show fan concert tour in 10 cities before releasing the digital single 'SHOCK' on Nov. 2.
YG said it is pushing ahead with new group debuts. The Asia Business Daily reports the company is preparing a five-member boy group and a four-member girl group and will confirm debut dates once title tracks are chosen.
Confirmed
- YG Entertainment disclosed on Nov. 9 KST preliminary consolidated third-quarter results of 156.7 billion won in revenue and 13.5 billion won in operating profit, with net profit of 6.4 billion won.
- Operating profit fell 56.8%, revenue 9.4% and net profit 73.8% from a year earlier, while revenue and operating profit each rose 22.7% from the second quarter.
- YG said the high base from last year's tours, including BLACKPINK's, along with BIGBANG world tour operating costs and distribution fees, lowered its operating margin from a year earlier.
Reported by other outlets
- Yonhap reports the operating profit was 28.9% below the market forecast of 18.9 billion won compiled by Yonhap Infomax.
- The Asia Business Daily reports the operating margin was 8.6%, down from 18.0% a year earlier, and that cumulative revenue for the first three quarters rose 15.5% to 431.6 billion won.
- The Asia Business Daily reports YG is preparing a five-member boy group and a four-member girl group, and BABYMONSTER plans a new album in early 2027.