HYBE and K-Pop’s “Big 3 ″—SM Entertainment, JYP Entertainment, and YG Entertainment — have finally revealed their revenue and profit from the second quarter of 2021 (Q2). Which agency tops with the most money between April and June this year? All will be revealed in the article below:
First, a quick breakdown of the three main financial terms of a K-Pop company. Revenue is the company’s total income from all sales before deducting any expenses. Operating profit is the amount a company is left with after paying most of its expenses, excluding savings or investment profits. Finally, net income (arguably the most important number) shows a company’s true profitability — its final income from all cash flows minus all costs and expenses…And the rankings are ranked in the following order:
4. YG Entertainment
YG Entertainment was the only company in the “Big 4” group that did not make a profit in the second quarter of 2021, which ended in June with a loss of ₩1.50 billion KRW (about 1.29 million USD). The company’s operating profit was ₩10.4 billion KRW (approximately $8.92 million) after generating sales of ₩83.6 billion KRW (approximately $71.7 million).
In Q2 2021, no YG Entertainment artists released new music, explaining the negative earnings numbers. Revenue is expected to increase significantly in Q3 as BLACKPINK’s Lisa makes her anticipated solo debut.
YG Entertainment’s finances have been going down since the first quarter of 2021, when the company posted a net income of ₩8.65 billion KRW (approximately $7.42 million) thanks to the return of TREASURE, iKON’s Bobby, and Seungyoon’s WINNER as well as BLACKPINK Rosé debut solo.
3. JYP Entertainment
Next up is JYP Entertainment, which posted a net income of ₩4.80 billion KRW (about 4.12 million USD) in the second quarter of 2021. The company’s operating profit was ₩9.60 billion KRW (about 8.24 million USD) ) after generating ₩40.6 billion KRW (approximately $34.8 million USD) in sales.
While no company has returned earlier in the year, Q2 2021 has seen the likes of DAY6, ITZY, TWICE increase sales significantly with their new releases.
However, JYP Entertainment has also been in financial decline since the first quarter of 2021. Despite not releasing any new music between January and March, the company posted a net income of ₩12 0.0 billion KRW (about 10.3 million USD).
2. SM Entertainment
SM Entertainment posted a net income of ₩16.3 billion KRW (about 14.0 million USD) in the second quarter of 2021. The company’s operating profit was ₩27.5 billion KRW (about 23.6 million USD) after generated revenue of ₩186 billion KRW (about 160 million USD).
In Q2 2021, SHINee and SHINee’s Taemin, Super Junior’s Yesung, EXO, and NCT Dream all return with new releases. The quarter also saw Red Velvet’s Wendy and Joy make their solo debuts, driving sales even further.
SM Entertainment nearly doubled earnings from the first quarter of 2021, when the company posted a net income of ₩8.67 billion KRW (approximately $7.44 million) following the return of SHINee, Super Junior, and EXO’s Baekhyun.
Finally, HYBE had the highest net income for the second quarter of 2021: ₩20.2 billion KRW (about $17.3 million). The company’s operating profit was ₩28.0 billion KRW (approximately 24.0 million USD) after generating sales of ₩279 billion KRW (approximately 239 million USD).
After a quiet first quarter, Q2 2021 saw many HYBE artists return: BTS, TXT, SEVENTEEN, NU’EST, and ENHYPEN, all of which brought in huge profits from album sales and streams.
HYBE’s earnings have been growing since the first quarter of 2021, when the company hít ₩15.8 billion KRW (about $13.6 million) in net income with no return.