HYBE, the entertainment company behind K-pop sensation BTS, has once again broken its first-quarter record, proving the strength of its multi-label strategy. The company's diverse artist lineup has been active, selling over 9 million albums in the first quarter.

On May 2, HYBE announced revenues of KRW 410.6 billion and an operating profit of KRW 52.5 billion for the first quarter of 2023. Revenues increased by 44.1% and operating profit by 41.7% compared to the same period last year. Adjusted EBITDA, which indicates actual cash flow, rose by 12.1% to KRW 71.9 billion. Revenue, operating profit, and adjusted EBITDA all reached their highest levels for a first quarter.

The first quarter was particularly notable for the accomplishments of HYBE's label artists. The artists under HYBE Labels sold a total of 9.11 million albums in the first quarter, a more than four-fold increase compared to the same period last year. This was due to the simultaneous album activities of various artists based on a multi-label strategy.

In particular, BTS member Jimin's solo album, released in March, recorded initial sales of 1.45 million copies. The title track, 'Like Crazy,' topped the Billboard Hot 100 chart, and the album itself reached No. 2 on the Billboard 200 chart, achieving the best performance in K-pop solo album history.

TXT sold a total of 3.14 million albums in the first quarter alone, led by their fifth mini-album, making them the artist with the most album sales in the first quarter based on the Circle Chart. They also topped the Billboard 200 chart. TXT's world tour, which began in March, has been selling out most of the seats, more than doubling the scale of their previous concerts.

Newkidd's single album 'OMG,' released in January, recorded sales of over 1.3 million copies in the first quarter. With their debut album selling around 1.2 million copies since its release last August, Newkidd has become an artist with multiple 'million-seller' albums.

SEVENTEEN sold 1.27 million copies of their Kihno album in the first quarter alone. The robust Kihno sales reflect the significant expansion of SEVENTEEN's global fandom, thanks to their extensive activities last year, including album releases, original content, and world tours. SEVENTEEN also strengthened their presence through unit activities in the first quarter.

Strong album sales drove direct participation revenue. HYBE's first-quarter direct participation revenue was KRW 234.5 billion, a 53.9% increase compared to the same period last year. Direct participation revenue accounted for 57% of total revenue.

Indirect participation revenue for the first quarter was KRW 176.1 billion, up 32.8% from the same period last year. Indirect participation revenue included various tour merchandise sales and revenue related to the self-produced game 'In the Soop with BTS,' which utilized BTS IP.

HYBE expressed its commitment to continue strengthening its profitability during an IR conference call held after the announcement of the financial results. To achieve this, the company plans to efficiently integrate the solution business capabilities that have already been largely internalized into the artist pipeline built through a multi-label strategy and to utilize external solutions as appropriate.

HYBE Labels artists' activities continue to be active in the second quarter, and HYBE's solution business is expected to expand further in conjunction with this.

HYBE CEO Park Ji-won said, "HYBE will actively support the growth and expansion of our artists and their global fandom by providing diverse content and services. We will continue to grow as a multi-label entertainment company and solidify our position as a global leader in the industry."

To achieve this, HYBE plans to strengthen and expand its diverse range of businesses, including music, games, and merchandise, as well as actively pursue new opportunities in emerging markets. The company also aims to capitalize on the growth potential of its existing artists while continuously discovering and nurturing new talent through its multi-label strategy.

Furthermore, HYBE is investing in cutting-edge technology, such as virtual reality and artificial intelligence, to provide fans with innovative and immersive experiences. These investments are expected to contribute to the company's long-term growth and profitability.

In conclusion, HYBE's multi-label strategy has proven highly successful, as evidenced by the record-breaking first-quarter results. The company's commitment to nurturing talent, providing diverse content, and expanding its global presence is expected to drive further growth and solidify its position as a leading player in the entertainment industry.

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