Will YG, which received a lot of positive news at the end of 2023, achieve success next year as well?

The uncertainty surrounding BLACKPINK’s contract renewal has been resolved. BLACKPINK’s continued influence, along with rookie girl group BABYMONSTER, adds to the positive outlook.

BLACKPINK’s full-group exclusive contract renewal on Dec 6th alleviated major uncertainties for YG Entertainment. Although individual contracts are yet to be finalized, expectations rise with the potential for full-group activities and solo projects. Analysts predict the release of digital singles, mini albums and full albums within a three-year renewal period, contributing to a 20% growth in operating profit.

The debut success of BABYMONSTER, which debuted on Nov 27th, draws attention as a pivotal factor for YG’s future. The synergy from BLACKPINK’s contract renewal is expected to positively impact the growth of new artists, creating a ripple effect on overall company performance.

BABYMONSTER’s debut track “Batter Up” achieved record-breaking views within 24 hours and surpassed 100 million views on Dec 15th, showcasing global streaming prominence. The group’s fast-paced debut sets expectations for sustained success with an additional digital single planned for release in the first half of next year and a full-length album containing more than 8 songs.

While BABYMONSTER’s initial fandom size is comparable to other successful groups like LE SSERAFIM, analysts estimate debut album sales around 400,000 copies. YG Entertainment’s revenue for this year is estimated at 558.3 billion won, with an operating profit of 93.9 billion won. Despite a potential slight decrease in performance next year, the company is expected to maintain a similar trajectory, with revenue in the 540 billion won range and an operating profit of around 83 billion won. Analysts emphasize the positive outlook, considering the renewal of key artist contracts and the potential success of new talents.

Source: Daum