Fueled by the comeback of the group BTS, agency HYBE recorded its highest-ever quarterly performance in both revenue and operating profit for the second quarter of this year.

HYBE announced in a regulatory filing that its preliminary consolidated operating profit for the second quarter stood at 170.9 billion won, marking a 159.3% increase compared to the same period last year.

This operating profit figure exceeded the market consensus of 155 billion won compiled by Yonhap Infomax by 10.3%.

Revenue surged 105.5% year-on-year to 1.45 trillion won, while net profit jumped 613% to 109.8 billion won.

"This is the first time quarterly revenue has exceeded 1 trillion won, and quarterly operating profit has also surpassed 100 billion won for the first time," HYBE explained. "Both revenue and operating profit are all-time quarterly highs."

Thanks to the strong second-quarter performance, the company's half-year revenue also surpassed 2 trillion won for the first time ever.

A breakdown of HYBE's performance by sector shows that "direct participation revenue," which includes albums, digital music, and concerts driven by the combacks and world tours of major artists including BTS, rose 132.2% year-on-year to 1.0399 trillion won.

Among these, album and digital music revenue increased by 43.0% to 326.8 billion won, while concert revenue surged 243.3% to 647.7 billion won.

Revenue from advertisements and appearance fees also grew by 113.6% to 65.4 billion won.

"Indirect participation revenue," encompassing merchandise (MD) and fan clubs, increased by 59.1% to 410.1 billion won.

Within this category, the merchandise and licensing division achieved an all-time high of 310.6 billion won, up 103.1% from the same period last year, driven by a successful world tour.

HYBE evaluated its own performance by stating, "While achieving more than double the revenue growth compared to the same period last year, we also secured underlying strength alongside quantitative growth by recording an operating profit margin of 11.8%."

HYBE attributed the strong second-quarter performance to BTS, who embarked on "Arirang," the largest-scale K-pop world tour in history, starting in April.

The fifth full-length album by BTS, "Arirang," ranked first in CD and LP sales within the United States.

It also contributed to South Korea ranking as the world's third-largest music exporting nation, following the United States and the United Kingdom, according to data from global music data company Luminate.

"The world tour by BTS has generated massive economic effects wherever concerts are held, even coining the new term 'BTS-nomics,'" HYBE explained. "On the 20th of this month, they appeared in the World Cup final halftime show—the first in tournament history—showcasing their status and influence as a global icon."

In addition to BTS, artists such as TOMORROW X TOGETHER, ENHYPEN, &TEAM, BOYNEXTDOOR, TWS, and CORTIS released albums in succession during the first half of this year, each achieving million-seller status based on the Circle Chart.

In the first half of this year, artists belonging to HYBE accounted for half of the "Top 10" best-selling CD albums in the United States.

HYBE stated, "Our artists held a total of 119 concerts across 12 teams in the first half of this year alone, and more than 200 concerts are scheduled for the second half." The company added, "This significantly surpasses last year's figures, when 10 teams held a total of 279 concerts."

"As touring activities increase, performance in the merchandise and licensing sector is also expected to grow, driven by the effect of boosted merchandise sales and offline events like 'The City Project,'" it added.

With active schedules from BTS and other affiliated artists, the growth of the fan platform Weverse was also notable.

Weverse recorded 14.43 million monthly active users (MAU) in the second quarter, breaking its all-time high record once again following the first quarter. Total payment amounts and ARPPU (average revenue per paying user) also increased by 12% and 24%, respectively, compared to the previous quarter.

HYBE analyzed that the activities of its artists have created a virtuous cycle leading to visits and extended dwell times on Weverse, membership subscriptions, and purchases of paid content.

Lee Jae-sang, CEO of HYBE, said, "Through our performance, HYBE has proven this past second quarter that it is a company redefining the global entertainment market and functioning as a core export infrastructure for South Korea's cultural industry. This performance is the result of our continued efforts toward business innovation, and we will continue to persistently pursue expansion and growth strategies moving forward."

(Photo provided by Big Hit Music, Yonhap News)