HYBE (352820) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached ₩500.6 billion, up 38.7% year-over-year but down from Q4, driven by strong global performance from artists, successful tours, and diversified content, with Music and Platform segments contributing the majority of revenue.

• Operating profit was ₩21.6 billion, a 50.3% increase year-over-year but a significant decrease from Q4; net profit attributable to owners was ₩60.2 billion, up from a net loss in Q4.

• HYBE expanded its global reach with new artist launches in Japan and the US, and deepened its presence in Latin America through concerts and collaborations.

• The company operates in three main segments: Music, Platform, and Tech-driven future growth.

• Net profit surged 398.3% year-over-year, with basic EPS for Q1 2025 at ₩1,449.

Financial highlights

• Consolidated Q1 revenue was ₩500.6 billion, with gross margin at 43.6% and operating profit margin at 4.3%.

• EBITDA for Q1 was ₩47.3 billion, up 18.9% year-over-year but down 47.6% sequentially.

• Operating expenses totaled ₩479.0 billion, up 38.2% year-over-year.

• Cash and cash equivalents at the end of Q1 2025 were ₩536.1 billion.

• Direct artist involvement revenue accounted for 64% of total, while indirect involvement made up 36%.

Outlook and guidance

• Revenue and profit are expected to improve from Q2 as most artists release new albums and resume tours.

• Over 150 concert shows are planned for 2025, with further increases likely as more events are confirmed.

• The company will accelerate growth through a multi-label, multi-genre strategy, new business development in solutions, platforms, gaming, and AI, and continued global expansion.

• J-POP boy band 'aoen' set to debut in June 2025, following a high-profile TV project.

• Focus remains on integrating technology with entertainment for new growth avenues.