HYBE Achieves Record Revenue of $1.73 Billion in 2024 Despite BTS Hiatus

Diverse Roster of Artists Drives Growth Amid Profit Decline

HYBE, the South Korean entertainment giant based in Yongsan-gu, Seoul, has showcased remarkable resilience in 2024, achieving an unprecedented revenue of $1.73 billion. This record revenue comes despite the absence of its flagship group, BTS, highlighting HYBE’s ability to flourish amid challenges. The company's growth has been propelled by the exceptional performances of artists such as SEVENTEEN, TOMORROW X TOGETHER, ENHYPEN, and NewJeans. Although the revenue saw a modest increase of 3.5% from the previous year, profitability faced challenges, with operating profit declining by 37.5% to $140 million and net income dropping into a $2.6 million loss. This shift in financial performance reflects increased investments in infrastructure, new artist debuts, and a changing revenue composition. Nevertheless, HYBE's robust growth trajectory emphasizes its strategic diversification and significant influence within the global K-pop industry.

A closer examination of HYBE’s revenue streams reveals a complex picture of its 2024 performance. Direct participation revenue, which includes album sales and concert earnings, reached $1.1 billion, representing a slight decline of 1.8% compared to the previous year. Despite a significant 11.3% decrease in album sales—an area traditionally dominated by BTS—a remarkable 25.6% increase in concert revenue helped mitigate this decline. This growth was driven by large-scale world tours from HYBE’s artists, illustrating the company's ability to adapt and thrive in a competitive landscape. Indirect participation revenue, which encompasses merchandise, licensing, and digital content, saw a 14.5% rise to $615 million. Notably, merchandise and licensing revenue surged by 29.1% to a record high of $319 million, largely fueled by tour-related sales such as light sticks and fan apparel. This growth highlights HYBE’s effectiveness in capitalizing on its artists’ global fanbases, reinforcing its sustained success even during BTS’s hiatus due to mandatory military service.

In 2024, HYBE’s domestic and international artists made a significant impact on the K-pop scene, solidifying the company’s market dominance. On South Korea’s Circle Chart, artists under HYBE claimed a commanding 40% share of annual album sales, up from 38% the previous year. SEVENTEEN led the charge, achieving over 10 million cumulative album sales for the second consecutive year, buoyed by their “Right Here World Tour,” which commenced in October and spanned cities such as Goyang, Bangkok, and major markets in the U.S. TOMORROW X TOGETHER also excelled, placing two albums in the Circle Chart’s Top 10 and captivating audiences with their “ACT: PROMISE” tour across Asia and North America, which started in May. ENHYPEN’s “Walk The Line” tour, which launched in October, featured standout dome performances in Japan, while NewJeans generated buzz with singles “How Sweet” and “Supernatural,” culminating in a massive fan meeting at Tokyo Dome in June, attended by 91,200 fans. These efforts not only bolstered HYBE’s revenue but also solidified its artists’ global appeal.

Digital streaming success further amplified HYBE’s achievements, with 15 songs from its artists ranking in the Circle Chart’s Global K-pop Chart Top 20, showcasing their dominance across popular platforms like Spotify and Apple Music. Solo releases from BTS members Jin, Jimin, V, and Jungkook, along with RM’s collaboration on Megan Thee Stallion’s “Neva Play,” charted on the Billboard Hot 100. Meanwhile, LE SSERAFIM’s singles “EASY” and “CRAZY” made waves in the first and second halves of the year, respectively. In the U.S., HYBE America’s Big Machine Label Group artists secured 10 Billboard chart-toppers, with Carly Pearce earning consecutive Grammy nominations and QC Music’s Quavo, Lil Baby, and Lil Yachty continuing to perform strongly. These accomplishments underscore HYBE’s unparalleled competitiveness in content, driving both direct and indirect revenue streams.

Despite this revenue success, profitability faced challenges in 2024. The lack of BTS’s group activities, combined with the costs associated with debuting new groups like KATSEYE in the U.S. and significant infrastructure investments for HYBE Latin America, pressured margins. Furthermore, additional expenses arose from scaling up new ventures such as Weverse and gaming, positioning HYBE for long-term growth at the expense of short-term gains. The shift in artist revenue distribution, moving away from BTS’s substantial contributions, also played a part, as new acts require significant upfront investment. However, these initiatives reflect HYBE’s strategic foresight in diversifying its portfolio and expanding into new markets, laying the groundwork for future rebounds.

Looking ahead, the outlook for HYBE in 2025 appears promising. The anticipated return of BTS from military service is expected to rejuvenate group activities, potentially restoring its significant revenue contributions. Alongside the ongoing growth of HYBE Music Group artists, economies of scale are likely to emerge, enhancing overall profitability. The recent addition of industry veteran Keith Hudson to strengthen artist management, coupled with revenue generation from HYBE Latin America, further reinforces this optimistic projection. These developments suggest that the challenges faced by HYBE in 2024 are a temporary dip in an otherwise upward trajectory, positioning the company as a global entertainment leader with a diversified and resilient business model.

HYBE’s impressive performance in 2024, marked by a record revenue of $1.73 billion, illustrates its adaptability and ability to thrive without solely relying on BTS. The successes of SEVENTEEN’s world tour, TOMORROW X TOGETHER’s chart-topping albums, ENHYPEN’s dome concerts, and NewJeans’ triumphs—combined with robust digital and merchandise earnings—highlight the depth of HYBE’s artist roster. While profitability faced challenges due to strategic investments, the company’s commitment to global expansion and emerging growth engines like Weverse and gaming signifies a bright future. As BTS prepares to return, HYBE’s blend of established stars and rising talents positions it for continued dominance in the dynamic K-pop and entertainment landscape.