“HYBE’s results are on fire this year... ‘GREEN GREEN’ hopes pinned on rookies next year”

[Financial News] SK Securities Co., Ltd. said HYBE’s improved profitability was evident in its record quarterly results for the third quarter this year, driven by BTS’s world tour and growth among its major artists. However, it forecast lower revenue next year amid uncertainty over BTS’s activities and said rookie artists such as CORTIS warrant attention. It maintained its “Buy” rating and target price of 290,000 won.
SK Securities Co., Ltd. analyst Park Jun-hyeong said on the 4th, “Third-quarter revenue came to 1.5257 trillion won and operating profit to 188.5 billion won, far exceeding market expectations and setting a record for quarterly results.” He added, “Even as concerts made up a larger share, the operating margin improved from the previous quarter, confirming a structure in which top-line growth translates into earnings.”
HYBE’s third-quarter revenue rose 109.8% year over year, and its operating profit returned to the black. The operating margin improved by 0.6 percentage points from the previous quarter to 12.4%. In particular, BTS’s North American and European world tour, alongside tours by major artists such as ENHYPEN and KATSEYE, helped concert revenue reach a record 726.8 billion won. Strong merchandise sales on the North American tour also brought related revenue to 334.6 billion won.
However, revenue is expected to decline next year amid uncertainty over BTS’s activities. SK Securities Co., Ltd. estimated HYBE’s 2027 revenue at 4.202 trillion won, down 16.6% from its forecast for this year. By contrast, it expected rookie artists’ growth to support earnings, as CORTIS’s cumulative album sales topped 4.5 million copies and attendance at KATSEYE’s world tour exceeded 600,000.
Analyst Park said, “At this earnings presentation, the possibility of additional BTS concerts and group or solo activities after the tour was mentioned.” He added, “The new U.S. boy group from Ryan Tedder, scheduled to debut in the first half of next year, is also worth watching. If localized IP continues to succeed following KATSEYE, further earnings growth will be possible.”

[email protected] Im Sang-hyeok Reporter