HYBE (352820) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue reached 500.6 billion KRW, up 39% year-over-year but down 31.1% sequentially from Q4.

• Operating profit was 21.6 billion KRW, a 50% increase year-over-year but a 66.5% decline from the previous quarter.

• Net profit surged to 55.3 billion KRW, a 398.3% increase compared to the same quarter last year.

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

• Strong global performance from artists, with successful world tours, fan meetings, and album releases reinforcing long-term growth.

Financial highlights

• Gross margin for Q1 FY2025 was 218.2 billion KRW, with a margin of 4.3%.

• EBITDA for the quarter was 47.3 billion KRW, up 18.9% year-over-year but down 47.6% sequentially.

• Operating expenses totaled 479.0 billion KRW, up 38.2% year-over-year but down 27.6% from Q4.

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

• Concert sales more than tripled year-over-year, offsetting a decline in recorded music revenue due to fewer album releases.

Outlook and guidance

• Over 150 concert shows are planned for 2025, including major world tours and first-time tours in Europe and Asia.

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

• HYBE will accelerate growth through multi-genre strategy, new business in solutions, platforms, gaming, and AI.

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