HYBE Marks Record High First Quarter Revenue

K-pop megastars BTS might be “on a break,” but their parent company HYBE is still cashing checks. According to just-released financial data, the Korean entertainment giant hit record highs in Q1 of 2023.

Why it’s important: With K-pop’s explosion in the lucrative American market, the Korean music industry has seen multiple companies jockeying for dominance. But despite HYBE losing its main cash cow (at least temporarily, with two BTS members doing mandatory military service), the company is only gaining steam.

By the numbers: HYBE posted Q1 revenues of about $306 million, up 42%. Operating profit was roughly $39 billion, up 44%. And EBITDA was almost $54 million, up 12%. Their album sales are ridiculous right now – 9.11 million units this quarter, which is up 185% year-over-year to $137 million.

How’d they pull it off? The company has been working to diversify its holdings with other bands and labels for years and is currently breaking BTS out into solo acts Tomorrow X Together sold 3.14 million Q1 albums, and NewJeans’ January single “OMG” sold more 1.3 million copies. Meanwhile, BTS member Jimin’s solo album sold 1.45 million copies “within the first week” of its late March release.

Looking ahead: Another BTS member breakout was released in April, with Suga’s solo album debuting at No. 2 on the Billboard 200 – so look for big sales on that one, too. And the company is still launching new acts like Boynextdoor, which will debut on May 30. They’re making moves in the U.S. as well, with the Scooter Braun-led HYBE America acquiring “Atlanta rap powerhouse” Quality Control for $300 million. That brings artists like Lil Baby, Migos, Lil Yachty and City Girls into the fold.