YG엔터테인먼트 블랙핑크. (사진=YG엔터테인먼트)

 

[Alpha Biz=(Chicago) Reporter Paul Lee] YG·JYP, the key to operating profit 'jackpot' is records and goods

YG Entertainment and JYP Entertainment broke their best performance in the first quarter of this year, more than doubling their operating profit from a year earlier.

According to the Financial Supervisory Service's electronic disclosure system on the 16th, YG recorded sales of 157.5 billion won and operating profit of 36.5 billion won in the first quarter on a consolidated basis. Compared to the same period last year, sales doubled and operating profit tripled. The operating profit ratio reached a record high of 23.1%.

JYP posted consolidated sales of 118 billion won and operating profit of 42 billion won in the first quarter, up 74% and 119% from a year earlier, respectively. JYP continued to be the highest in the industry with an operating profit ratio of 35.6%.

Increased music and record sales and MD sales due to the resumption of concerts played a major role in YG and JYP's good performance. YG's first-quarter record and DVD sales rose 53.3% year-on-year to 15.3 billion won.

Concert sales, which were '0 won' in the first quarter of last year, also jumped. BLACKPINK and Treasure toured the World Tour and Japan and Asia, respectively, with sales reaching 40.4 billion won. Thanks to the resumption of offline performances, MD sales also increased 100% year-on-year to 17.1 billion won. YG Plus (YG PLUS), a consolidated subsidiary specializing in distribution of records, music sources, and MDs, saw its sales increase 106% year-on-year to 55.5 billion won. Operating profit rose 117% to 9.2 billion won.

JYP also performed well in the field of music and MD amid the growing popularity of artists such as TWICE in North America. Records and MDs account for 34% and 23% of total sales, respectively. According to JYP performance announcement conference call data, record sales such as TWICE and Enmix rose 66% year-on-year to 40.7 billion won, and concert sales rose 106% to 6.7 billion won.

MD sales rose 274% year-on-year to 27.5 billion won, the highest quarterly sales. JYP established JYP 360, an IP business subsidiary such as MD in 2021, and plans, produces and distributes artist MD and contents.

According to JYP's sales trends by region in the first quarter, growth in North America was remarkable. In the first quarter, domestic sales were 42%, followed by other regions such as North America (34%), and Japan (22%). In terms of year-on-year sales growth, Japan increased 110% and North America grew 198%.

North American sales totaled 39.7 billion won, which is also the largest quarter. The proportion of sales in other regions, including J-North America, was only 9% from 2017 to 2018, but grew rapidly to 16% in 2019 and 18% in 2020. After rising to a similar proportion (27%) to Japan (28%) in 2021, it has continued to grow rapidly until this year, surpassing Japan last year.

 

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