Hybe's Operating Profit Drops 40% During BTS Military Service, Despite Record Revenue
Korean entertainment company Hybe reported a 40% decrease in operating profit for 2024, primarily due to BTS members' military service hiatus and strategic investments.
BTS members performing on stage
Despite the profit decline, Hybe achieved its highest revenue year to date, generating 2.25 trillion Korean won ($1.58 billion), a 4% increase from 2023. The fourth quarter of 2024 saw revenue of 725.3 billion won ($507.5 million) with operating profit of 65 billion won ($45.5 million).
Key factors affecting the financial results include:
- BTS temporary break for military service
- Shift in artist sales mix due to new debuts
- Strategic investments in Weverse and gaming infrastructure
Other Hybe artists helped maintain strong revenue streams:
- SEVENTEEN sold over 10 million albums between 2023-2024
- ENHYPEN and NewJeans showed significant global success
- Artist-involved promotions generated 1.45 trillion won ($1 billion)
Weverse platform growth highlights:
- North America: 26% user increase
- Brazil: 21% growth
- Mexico: 14% growth
- Japan: 22% growth
- Taiwan: 54% growth
- New mainstream artists added: Ariana Grande, Dua Lipa, Megan Thee Stallion
Hybe expects operating profit to recover in 2025 with BTS's anticipated return after completing their military service by June. The company also projects positive returns from Weverse investments starting January 2025.
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