Source: YG Entertainment

 

 

[Alpha Biz= Kim Sangjin] Yuanta Securities forecasted that YG Entertainment's Q4 2024 consolidated revenue would decrease by 12.8% YoY to 95.4 billion KRW, with an operating loss of 4.5 billion KRW.


Yuanta noted that despite an increase in IP usage due to the release of BabyMonster's debut album, the company faces unavoidable revenue shrinkage compared to the previous year. Additionally, rising promotional expenses are expected to limit profit improvements.


However, with BLACKPINK's comeback and a large-scale world tour planned, along with BabyMonster's growing global recognition, Yuanta expects rapid contributions to earnings. 

 

BLACKPINK's world tour, scheduled from Q3 2025 to Q2 2026, is projected to surpass previous tours with 2 million attendees. BabyMonster, in its second year, is expected to attract nearly 300,000 attendees to its global tour, signaling top-tier global recognition.


Yuanta Securities maintained its "Buy" rating for YG Entertainment, setting a target price of 60,000 KRW. Despite expected short-term earnings underperformance, the firm remains optimistic about long-term growth driven by BLACKPINK's comeback and BabyMonster's growth.

 

 

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