On May 2 KST, HYBE Labels reported its performance results from the first quarter of 2024.

The entertainment corporation reported total sales of 360.9 billion KRW (~ 262 million USD) for Q1 of 2024, a 12% decrease when compared to the same quarter in 2023. In Q1 of 2024, HYBE Labels focussed on the successful launch of its two new artists, TWS and ILLIT. Sales from the purchase of digital music, albums, as well as participatory contents like concerts, advertisement activities and campaigns, etc took up 60% of the Q1 sales, with concerts by Seventeen, ENHYPEN, and &TEAM yielding high results. 

The operating profit for Q1 was reported at 14.4 billion KRW (~ 10.5 million USD), a 73% decrease from the same quarter in 2023, owing in part to the inactivity of major sunbae artists under HYBE Labels. 

Sales and operating profits are expected to see a significant increase beginning in Q2 of 2024, with major artists resuming activities and embarking on world tours. Notably, BTS member Jin is scheduled for discharge from his mandatory military service some time in June.

While delivering a report on HYBE's first quarter performance, CEO Park Ji Won stated, "While its pioneering the multi-label system, HYBE Labels encountered numerous small and big challenges. I would like to apologize to the shareholders for causing concerns as a result of these challenges."

Regarding the internal audit of the HYBE subsidiary ADOR, Park Ji Won relayed, "The auditing process confirmed our suspicions. We are currently taking appropriate measures. Because of recent events, some may doubt the decision for HYBE to adopt a multi-label system. However, in order to achieve true advancements, we will continue to make improvements while correcting our flaws."

SEE ALSO: BTS Jin reflects on fame, says he hasn't fully realized his world star status