YG is facing an extremely serious plummet in its revenue and profit.
In the morning of May 14th, YG Entertainment’s financial report for the first quarter of 2018 was published and this report shocked many people.
According to the report, both the revenue and profit of this company dramatically decreased compared to the same period last year. While the revenue this year is 27,7% lower, earning 77,3 billion KRW, YG’s profits’ plunged 84,4% on-year, earning only 2,3 billion KRW for YG.
Moreover, the two survival shows produced by YG – “MIXNINE” and “Let’s Live a Good Life” – had been invested with a great amount of money but there was no profit. Only for “MIXNINE”, YG had lost 11 billion KRW (4 billion KRW loss in QIV/2017 and another 7 billion KRW loss in QI/2018).
It looks like that the profits from activities of WINNER, iKON and Black Pink made up for a part of the company loss. However, the combined ticket sales of these three groups were only 1/3 (about 37%) of Big Bang’s ticket sales.
Meanwhile, experts predicted that YG’s situation for the next few quarters will be even worse, as Seungri – the only active member of Big Bang at present – will join in the military, and all the activities of Big Bang members, who are YG’s “money maker”, will be officially frozen.
Finally, according to the experts and investors’ analysis, YG is attempting to fill the vacancy left by Big Bang. First, the company will let Black Pink make a comeback with a new album (despite the release date is unknown?). Then, the new boygroup with the member Bang Yedam will debut in 2019 and in 2020, Big bang will return. Besides, the profit from YGKPlus, a YG’s subsidiary, is expected to be an aid to YG’s “tough” situation.