HYBE (352820) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was ₩527.8 billion, down 1.9% year-over-year and 17.6% sequentially, with net income at ₩41.4 billion, impacted by non-operating losses and FX fluctuations.

• Operating profit was ₩54.2 billion with a margin of 10.3%, down 25.4% year-over-year but up 6.4% from the previous quarter.

• Strong global performance from multiple artists, including SEVENTEEN, ENHYPEN, BOYNEXTDOOR, ILLIT, and KATSEYE, with significant album sales and chart achievements.

• The business operates across music, platform, and tech-driven future growth, with a diversified revenue mix from albums, concerts, MD/licensing, content, and fan clubs.

• The company continues to expand its multi-label strategy globally, focusing on artist development and platform innovation.

Financial highlights

• Revenue with direct artist involvement was ₩323 billion (61% of total); indirect involvement was ₩204.9 billion (39%).

• Recorded music sales were ₩214.5 billion, down 18.8% year-over-year; streaming revenue made up about 30% of this.

• Concert sales reached ₩74 billion, supported by major tours and fan meetings, but dropped 14.8% year-over-year and 48.6% sequentially.

• Merchandise and licensing sales were ₩99.1 billion (up 16% YoY); content sales were ₩79.8 billion (up 64% YoY), driven by pop-up stores and documentaries.

• EBITDA for Q3 2024 was ₩80.96 billion, down 16.4% year-over-year but up 1.8% sequentially.

Outlook and guidance

• Q4 expected to see growth in direct artist revenue as more artists return and new activities commence.

• 2025 projected as a year of tangible results from investments in music, solutions, platform, game, and AI businesses.

• Margin and profitability expected to improve as one-off expenses subside and new businesses mature.

• Strategic focus remains on integrating music and technology, expanding the Weverse platform, and developing AI and gaming businesses.