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![Report Reveals HYBE Labels’ Subsidiaries Financial Performance in 2023 3 20210319000676 0 2](https://i0.wp.com/theubj.com/uae/wp-content/uploads/2024/05/20210319000676_0-2.jpg?resize=900%2C439)
A recently surfaced report on the financial outcomes for HYBE Labels‘ subsidiaries for the year 2023 has brought unexpected statistics to light amongst fans.
The general public may be familiar with HYBE’s more prominent subsidiaries managing K-Pop groups—such as BIGHIT MUSIC, Pledis Entertainment, ADOR, and SOURCE MUSIC. However, HYBE’s portfolio is more diverse, including subsidiaries in different sectors like management, gaming, and IT. According to the report detailing the financial results of 17 subsidiaries, the numbers revealed that close to double the amount of these entities suffered losses compared to those that turned a profit in 2023.
The following six HYBE subsidiaries saw positive net profits in 2023:
- BIGHIT MUSIC: Total sales reached 552.3 billion won ($407.3 million USD), with a net profit of 140.3 billion won ($103.5 million USD).
- HYBE Japan: Garnered 504.2 billion won ($371.8 million USD) in sales and 49.8 billion won ($36.7 million USD) in net profit.
- Pledis Entertainment: Sales were 327.1 billion won ($241.2 million USD), with a net profit of 60.2 billion won ($44.4 million USD).
- SOURCE MUSIC: Posted sales of 61.1 billion won ($45.1 million USD) and a net profit of 12.1 billion won ($8.9 million USD).
- ADOR: Achieved 110.2 billion won ($81.3 million USD) in sales and a net profit of 26.5 billion won ($19.5 million USD).
- Weverse Japan: Recorded 62.7 billion won ($46.2 million USD) in total sales and a net profit of 4.5 billion won ($3.3 million USD).
In contrast, a distressing 11 subsidiaries were in the red, showing a negative net profit for the year:
- HYBE America: With total sales of 226.3 billion won ($166.9 million USD), the net loss amounted to -142.4 billion won (-$105.0 million USD).
- Weverse Company: Sales were 337.9 billion won ($249.2 million USD), with a net loss of -4.4 billion won (-$3.2 million USD).
- HYBE UMG LLC (management agency): Managed 1.0 billion won ($737k USD) in sales but faced a net loss of -23.4 billion won (-$1.7 million USD).
- KOZ Entertainment: Reported sales of 19.4 billion won ($14.3 million USD) against a loss of -7.4 billion won (-$5.5 million USD).
- HYBE Labels Japan: With 13.8 billion won ($10.2 million USD) in sales, they incurred a net loss of -8.7 billion won (-$6.4 million USD).
- HYBE Holdings (holding company): Sales at 1.0 billion won ($737k USD), with a net loss of -8.2 billion won (-$6.0 million USD).
- HYBE IM (involved in game software development and supply): Achieved 30.8 billion won ($22.7 million USD) in sales but a net loss of -20.9 billion won (-$15.4 million USD)
- Weverse America: Made 17.0 billion won ($12.5 million USD) in sales, but lost -1.9 billion won (-$1.4 million USD).
- Supertone (specializing in app software development and supply): Had 2.3 billion won ($1.7 million USD) in sales and suffered a net loss of -6.6 billion won (-$4.9 million USD).
- Binary Korea (system software development and supply): Exhibited no sales and a net loss of -3.8 billion won (-$2.8 million USD).
- XING CAN SHENG SHI (management agency): Reported 3.0 billion won ($2.2 million USD) in sales but a net loss of -300 million won (-$221k USD).
The collective net profits for HYBE in 2023 stood at 65.4 billion won (approx. $48.2 million USD), which paints a stark picture as this figure is merely half of what BIGHIT MUSIC alone achieved in profit for the same period.
Below are reactions from Korean netizens to the financial report.
- “There are only a few labels that make money..??”
- “BIGHIT’s sales are almost half.”
- “HYBE America…”
- “Look at the deficit of HYBE America, it’s not covered by BIGHIT’s earnings.”
- “Why are there so many useless companies?”
- “When idols work hard to make money, they forget about other things.”
- “Why are they in the game business?”
- “This is the No. 1 in the industry…?”
- “BTS still feeds you.”
The international fan base shares similar sentiments regarding the 2023 profitability figures of HYBE’s subsidiaries.
Does this financial report take you by surprise?
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FAQ: HYBE Labels’ Subsidiaries’ Profitability in 2023
- Which HYBE subsidiary had the highest total sales in 2023?
BIGHIT MUSIC led the subsidiaries with total sales of 552.3 billion won ($407.3 million USD). - What was the overall financial performance of HYBE Labels in 2023?
Out of 17 subsidiaries, only six reported positive net profits, whereas eleven had net losses. - Why are netizens critical about the subsidiaries with financial losses?
The losses suggest that some subsidiaries are not performing well and relying heavily on the profitability of a few business units, particularly those managing popular K-Pop groups. - What was the collective net profit of HYBE in 2023?
The total net profit for HYBE was about 65.4 billion won (~$48.2 million USD). - Are fans surprised by these financial results?
Yes, both Korean and international fans were surprised by the report, and many expressed concerns over the financial health of various subsidiaries.
Conclusion
The financial performance report for 2023 regarding HYBE Labels’ subsidiaries offers revealing insights into the profitability and challenges faced by the enterprise. Despite the impressive earnings of a few key players, such as BIGHIT MUSIC, Pledis Entertainment, and HYBE Japan, the fact that a significant number of subsidiaries encountered losses raises questions about the conglomerate’s diversification strategy. The report has stirred reactions across the fan community, prompting discussions on the sustainability of HYBE’s current business model and its dependence on top-tier K-Pop groups for substantial earnings. This underscores the inherent risks associated with the entertainment industry, where successful management of talent often dictates the financial trajectory of such expansive corporate structures.