YG Entertainment’s 4th Quarter Financial Report: BABYMONSTER’s Unexpected Success Boosts Performance
YG Entertainment saw a surprising surge in its 4th Quarter performance last year, primarily driven by the commercialization of the girl group BABYMONSTER. The company is also expecting strong results in this year with BLACKPINK‘s full group world tour.
For Q4, YG Entertainment reported preliminary revenue of 104.1 billion KRW (approximately 81.7 million USD), operating profit of 990 million KRW (approximately 758,000 USD), and net profit of 20.88 billion KRW (approximately 16.1 million USD). Revenue increased by 24.6% compared to the previous quarter, and both operating and net profits transitioned into the black.
YG Entertainment’s strong Q4 performance was driven by the activities of artists like BABYMONSTER and TREASURE. Analyst Lee Hwa-jung from NH Investment & Securities pointed out that BABYMONSTER’s album, global music success, and pop-up store sales exceeded revenue expectations. Samsung Securities’ Choi Min-ha noted that BABYMONSTER’s first full album sold 840,000 copies, contributing significantly to the results, with TREASURE also boosting performance with a digital single.
Looking ahead, YG Entertainment is set to benefit from the world tours of BLACKPINK, BABYMONSTER’s first world tour, and TREASURE’s ongoing activities. Choi Min-ha mentioned that BABYMONSTER’s first world tour is expected to be unusually large, and TREASURE has plans for a special album in March, a full album in the third quarter, a North American fan concert, and a world tour later in the year.
The company is particularly optimistic about BLACKPINK’s upcoming world tour. BLACKPINK has announced a tour starting in July in Korea, with 13 performances in 10 cities. Analyst Choi expects the tour’s size to increase, driving concert and merchandise sales.
Analyst Lee also predicts that BLACKPINK’s tour will include about 60 stadium performances, including encores. While the contract renewal terms might slightly affect the revenue share, the scale of the tour is expected to significantly boost YG’s financial performance.
