Katseye, the international girl group formed jointly by Geffen and Hybe. Photo Credit: TV Ten

Flaunt Weeekly Are K-pop fans getting tired of K-pop music? Hybe has revealed rocky Q3 2024 financials, including a nearly 19% YoY slip in recorded music revenue as well as a 98.6% YoY net profit falloff.

The professional home of BTS, NewJeansand Seventeen posted those financials in Korean as well as English today. According to the resource, Hybe’s Q3 2024 revenue approached $376.98 million (₩527.85 billion), down 1.9% YoY and close to 18% quarterly.

Within the sum, the aforementioned recorded music category suffered an 18.8% YoY decrease to $153.21 million (₩214.49 billion); the quarter’s relatively light release schedule included Enhypen’s Romance: UntoldThe Seraphim’s Crazy EP, and a debut EP entitled SIS (Soft Is Strong) from Geffen and Hybe’s jointly developed Katseye girl group.

(With physical remaining decidedly strong in the K-pop world, about one-third of total recorded music sales derived from streaming, per execs.)

Next, concerts revenue dipped 14.8% YoY to $52.85 million (₩73.99 billion), the breakdown shows, while ads and appearances rounded out the “artist-direct” category with a 9.8% YoY improvement to $24.64 million (₩34.50 billion). (BTS’ Jin, having completed his mandatory military service in mid-June, made a substantial contribution to the latter category, CEO Lee Jae-sang said during Hybe’s earnings call.)

But Q3 wasn’t free of positives for Hybe: Merchandise and licensing revenue jumped 15.7% YoY to $70.73 million (₩99.14 billion), “contents” revenue spiked 63.6% YoY to $56.90 million (₩79.76 billion), and Hybe’s Weverse superfan platform drove 23.4% YoY growth in the fan-club category ($18.54 million/₩25.97 billion total).

Now with 9.7 million monthly active users, Weverse rolled out several features and appearance-related improvements in Q3 and is beginning to lean aggressively into advertising, higher-ups explained in more words. A label-focused subscription membership, with VOD downloads, ad-free use, and different features, is in the works as well.

Lastly, in terms of core financials, Hybe’s Q3 2024 operating profit fell 25.4% YoY to $36.68 million/₩54.19 billion; the previously highlighted net profit came in at $1.03 million (₩1.44 billion), according to the report.

Returning to the initially mentioned question – are K-pop fans getting tired of K-pop music? – the top-level answer, as demonstrated by the ongoing sales attributable to new releases, appears to be “no.”

However, execs have for some time acknowledged a need to diversify beyond the genrehence Hybe’s purchase of Exile MusicQuality Control, and more. Running with the point, the Latin-focused Exile is preparing to debut a “localized” act, Hybe indicated during the Q3 earnings call, and a growing list of non-K-pop artists are joining Weverse.

Also tied to Q4 are a variety of album and EP releases for Hybe. Seventeen kicked off the fourth quarter by dropping Spill the Feels last month, Enhypen’s teed up a “repackaged edition” of its second album for November 11th, and Jin’s debut solo album (entitled Happy) is set to release on the 15th, to name a few.

Plus, as of this coming June, all seven BTS members will have completed their military service, the company emphasized. During today’s trading, Hybe stock (KRX: 352820) was essentially flat at $144.35/₩202,000 per share.