JYP Entertainment observes an exponential increase in sales and profit improvement in the first quarter
JYP Entertainment hit a home run in the first quarter with rapidly increased sales and improved profits.
According to JYP Entertainment’s quarterly report submitted on May 15th, JYP’s consolidated sales in the first quarter jumped 74.1% year-on-year to KRW 1180.47 billion. It surpassed the already high market expectations of KRW 97.6 billion.
Profit improvement was greater than sales. Operating profit increased 119.3% to KRW 420.3 billion and net profit increased 155.1% to KRW 42.73 billion.
It was far below market expectations for an operating profit of KRW 27.1 billion and a net profit of KRW 20.9 billion.
In the first quarter of last year, sales increased in all sectors except for the income from appearance fees. In particular, album and digital music sales as well as profits from portrait rights led to external growth and improved profits.
JYP said that content-related sales such as albums, MDs, and IP licensing grew as global awareness of major artists such as TWICE grew exponentially in the first quarter, especially in North America.
It also explained that profitability improved as content sales volume increased and JYP360’s margins improved. If it exceeds a certain size, it will exceed a level where is a surge in profits.
In the first quarter of last year, entertainment companies performed well enough to have expectations for re-openings. In particular, YG Entertainment was evaluated as a surprise performance, and its stock price also soared.
YG Entertainment’s sales rose 108.6% from the previous year to KRW 157.5 billion. The company’s operating profit rose from 497.6% to KRW 36.451 billion thanks to BLACKPINK’s performance in the first quarter.
In the first quarter, HYBE’s sales increased by 44.1% from the same period last year to KRW 410.6 billion, and operating profit increased by 41.5% to KRW 52.5 billion. Even though some members of BTS were inactive as they have enlisted in the military, the company still achieved the highest performance ever.
SM posted KRW 203.9 billion in sales, up 20.3% from the previous year, and KRW 18.262 billion in operating profit, down 5% amid the dispute over management rights in the first quarter. It fell slightly below market expectations.
Source: Smart Profit