Big Hit Entertainment Profits Overtake The Big Three
Big Hit Entertainment witnessed their best performance yet surpassing other major entertainment companies in Korea
Big Hit Entertainment that houses K-pop groups such as BTS and TXT, recorded an amazing feat since the company’s establishment. Their record has exceeded the three major entertainment companies in South Korea namely: SM Entertainment, JYP Entertainment, YG Entertainment.
According to the audit report published by Big Hit on March 31 this year, they registered sales of 587.2 billion won and the operating profits showed at 98.7 billion won. With YoY sales at 95%, the operating profit increased by 24%.
Big Hit Entertainment’s operating profit count goes beyond SM Entertainment, JYP Entertainment and YG Entertainment’s performance. Last year, SM Entertainment stood at operating profit of 40.4 billion, JYP Entertainment at 43.5 billion while YG Entertainment posted at 2 billion won respectively.
The growth of Big Hit as a company can be largely credited to BTS
BTS ‘albums Map Of The Soul: Persona has sold about 372 million copies last year. Stadium performances for their Love Yourself: Speak Yourself‘ tour scored a turnover of 116.6 million US dollars (about 136 billion won) with a total of 976,283 tickets sold. This, combined with their other initiatives such as pop-up stores including online sales and live broadcasting-related revenues, are projected to reach a whopping 200 billion won.
BTS’ new album Map Of The Soul: 7 sold over 411 million copies globally while simultaneously topping the charts around the world.
Acquisitions Contribute To Profit
Big Hit further propelled the advancement of the corporate structure last year and built a multi-label system with their existing company Big Hit Entertainment Japan as well as acquiring other companies under them such as girl group GFriend’s agency Source Music. Additionally, developer companies like Superb, beNX Japan, beNX America as well as Big Hit Three Sixty, Big Hit IP and Belift (Co-Managed by CJ E&M) also contributed to the company’s growth. It can be expected that there will be further growth in various business models for Big Hit.
Private investment firm STIC Investments received a reported 12% share of Big Hit Entertainment in October 2018 of roughly 104 billion won (93 million US dollars). In March 2019, the company announced their 2018 audit report wherein they experienced a 132% increase in sales compared to 2017. It makes approximately 214.2B KRW, or about US$189.38 million profit. They had a 97% percent increase in operating profit for the year making 64.1B KRW (US$56.72 million) and a 105% percent increase in net profit making 50.2B KRW (US$44.41 million).
Big Hit Entertainment further, moved toward an IPO and selected underwriters. JP Morgan, NH Investment & Securities, and Korea Investment & Securities were chosen as main managers while Mirae Asset Daewoo was appointed as a joint manager as Big Hit aimed to enter the stock market in 2020. Big Hit also changed their accounting standards from K-GAAP to K-IFRS which since 2011, is the standard that is mandatory for listed companies.
Big Hit’s other boy group Tomorrow x Together has also enabled the steady growth of the company through their total album sales as well as reaching over 600 million views on their MV as a rookie group.
It seems that Big Hit will continue to grow as a company in 2020 as well. Although, due to the COVID19 situation, the company has faced a setback after BTS cancelled their upcoming shows.
Besides this, the company does have future plans to introduce new artists under their label as well as under their partner companies as well.
Source : Star News
Images Credit To : Big Hit Entertainment
How does this story make you feel?