An insider report, called the Hana Financial Investment Equity Research, is circulating online and it reveals YG Entertainment‘s future plans following Seungri‘s Scandal. Written by analyst Lee Ki Hoon, this report outlines YG Entertainment’s current status and future plans – and ultimately advises readers to buy YG shares. K-Pop fans are looking over the report and discussing how its contents affect their YG Entertainment artists.
- Termination of the exclusive contract with Seungri.
- Previously, YG didn’t think it was necessary to manage the artist’s personal business, but after the current situation broke out, they are re-considering about that.
- In terms of the relationship between singer and agency, Seungri was in the lead because he made his debut in 2006 which made him difficult to manage.
- These areas will be controlled and they will strive to build trust in the market through the establishment of the system.
- Louis Vuitton’s redeem claim date is October 16th. YG is likely to repay approximately 67 billion won after the expiry date.
- YG has already partially recognised liability and interest expense is already recognised.
- YouTube subscribers and views are high but unit price is low.
- Their Youtube unit price by country is North America > Korea > South East Asia.
- Indonesia, the country which has the most views for BLACK PINK, is 1/8 the North American unit price.
- YG’s digital music revenue decreased from 55.1 billion won in 2017 to 49.9 billion won in 2018 due to a decrease in the contribution of the Big Bang.
- Domestic/Overseas Sales Percentage Changed from 5:5 to 4:6
- BLACK PINK is planned to have a comeback in early April.
- BLACK PINK’s North America/Europe Tour is spinning with Kia Motors’s sponsorship as the singer’s own name is low.
- BLACK PINK Rosé’s solo debut is expected after their tour.
- BLACK PINK’s performance-related profit risks are not a burden to YG.
- WINNER will release a digital album after BLACK PINK’s comeback. Song Min-ho and Kang Seung-yoon will appear as solo this year.
- iKON: Repackage album I’M OK released in January, and because there was many group activities in 2018, there will be mostly solo + unit activities this year.
- After BLACK PINK and WINNER, iKON and Lee Hi’s solo comeback are expected.
- YG’s Jewelry Box: Will debut between May and July, currently in the process of making contents. This year, they will release domestic music/record only, and the specific timeline will be determined based on the reaction after their debut.
- After debut, TREASURE and MAGNUM will be separated, and MAGNUM is expected to receive positive responses with three Japanese members.
- Big Bang will be finished their militay service sequentially from the end of the year and the sales is expected to rise again (Dome Tour is being considered).
- Broadcast production – currently focused on the filming of the Treasure Box project, the sales hasn’t reached the expected scale.
- YG New Building is scheduled to be completed at the end of the year, and the amortization period is 40 years.
- YG artists’ comeback usually took a long time in the past, but in the future it will be possible that they make a comeback twice a year, and will work hard to build trust from the market as all-round entertainers.
With so much information regarding their favorite artists, fans question the validity of this report. Most often, these financial investment reports are based on the information officially released by the agencies and/or from direct meetings with the agencies’ IR departments.
Sources: KB
