Shares of YG Entertainment fell to 18,950 won in March of this year but since October started the price has soared to 60,500 won!
It seems like YG Entertainment has overcome the losses they made during the Burning Sun Gate which hit them back in January of 2019 in terms of their stocks at least.
Although former Big Bang member Seungri and ex-CEO Yang are still involved in investigations surrounding their alleged wrongdoings,experts believe that the success of BLACKPINK and Treasure have helped aid the company become better.
(Article continues to talk about Burning Sun Gate,Seungri,Jung Joonyoung,Yang etc)
Operating profit fell to 2 billion won in 2019 from 19.8 billion won in 2018, and net profit also shifted from 15.9 billion won to a deficit of 24.6 billion won. The slump continued into this year, with operating losses reaching 2.1 billion won and net losses for the current term reaching 8.9 billion won in the first quarter.
YG changed its profit margin in the second quarter of this year.
Group BLACKPINK / Photo courtesy of YG Entertainment
In this crisis, YG’s ‘saviour’ was BLACKPINK. Many thought it would be BigBang however the group’s Coachella exclusive comeback was cancelled due to the Covid-19 outbreak and therefore didn’t end up happening. In the meantime, BLACKPINK has been breaking records left and right from Billboard to YouTube, aiding YG in getting huge profits.
Over the past six months, YG Entertainment’s share price has increased by 151% and its expected to increase more next year.
A researcher said that even though the psychical album sales bring in less money to YG Entertainment compared to other agencies, it is expected that the sales of BLACKPINK and Treasure will bring in millions of dollars!
The stock price is at its highest since 2015,if YG keeps treating TREASURE and BLACKPINK nicely they can expect their profits to increase even more.