“Decline In Profit” — BTS’s Absence Has Massively Impacted HYBE’s Finances

HYBE’s CEO himself acknowledged the challenges.

HYBE has faced a significant financial impact due to BTS’s ongoing military service, with the absence of the group affecting the company’s operating profit. At the annual general shareholders’ meeting on March 31, HYBE’s CEO himself admitted the company’s financial situation and spoke about the group’s highly anticipated return

Lee Jae Sang acknowledged the challenges faced by HYBE in the absence of BTS.

Last year, HYBE artists held a total of 172 concerts, and concert revenue saw a significant increase compared to the previous year. The absence of BTS, changes in revenue distribution among artists due to the debut of new groups, and investments in new business ventures all contributed to a decline in operating profit.

— HYBE CEO Lee Jae Sang

Despite these challenges, HYBE expects financial improvements in other areas, including its global fan platform, Weverse, and the gaming sector.

In 2025, we will focus on both external growth and strengthening our profitability. We will enhance regional diversification while fully implementing our multi-home, multi-genre strategy. We also anticipate significant results from the new services we have been preparing for Weverse and our new game sector.

— HYBE CEO Lee Jae Sang

Beyond BTS, HYBE is continuing its multi-label expansion strategy in key global markets. Lee revealed that the company is developing a multi-label system in Japan, where its solution business generated between 600 billion to 700 billion KRW in revenue last year, making it the third-largest company in the market. He also announced plans for a new audition program in Japan, which will lead to the debut of a second group in the country.

Concluding his remarks, Lee reaffirmed HYBE’s long-term vision, stating, “Our multi-label system, which we have been carefully designing, is gradually becoming more solidified. We will now focus on expanding this system worldwide and firmly establishing our multi-home, multi-genre strategy.”

While BTS’s absence has created financial difficulties for HYBE in the short term, the company remains focused on strategic growth, with their return expected to bring a substantial boost in the near future. Meanwhile, the company’s CEO also commented on BTS’s highly anticipated comeback.

HYBE CEO Addresses BTS’s Highly Anticipated Comeback