Hybe Shares Drop Despite Record Revenue from BTS Concerts
Despite record revenue and operating profit in the second quarter driven by BTS' successful concerts, Hybe's shares plummeted. The stock fell nearly 16% over two days, marking its worst performance since June 2022. Analysts attributed this to lower-than-expected profitability due to concert revenues having a smaller margin compared to merchandise sales. The Arirang tour significantly boosted revenue and operating profit but came with higher artist-settlement costs that reduced margins below market expectations of around 12%. While the company plans for over 300 concerts in 2026, analysts remain cautiously optimistic about future earnings potential from new groups like Cortis and Katseye as well as merchandise expansion.
Topics: BTS Hybe K-pop industry market reaction revenue and profit performance