A researcher reveals that BLACKPINK and TREASURE can produce profit for YG Entertainment alone.
Researcher Says BLACKPINK and TREASURE Can Produce Profit for YG Entertainment Alone, Does Not Need BIGBANG
The Korea Investment & Securities expressed their opinions regarding YG Entertainment, with the entertainment company expected to see good results due to its increase of sales volume centered on its new groups, with a target stock price of 60,000 won ($53.78).
On April 7, Park Ha Kyung, a researcher at Korea Investment & Securities, predicted that YG Entertainment's operating profit for this year is 33 billion won ($29.5 million), having a 206 percent increase from the same period last year.
In addition to the growth of their music business and the high-margin sales generated from various platforms due to their artists' activities and active promotions this year, it has cleared up the company's deficits.
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Researcher Park also analyzed that YG Entertainment will not have much loss with the absence of the company's super group, BIGBANG. "YG is okay without BIGBANG now," said Researcher Park.
She added that with only BLACKPINK and TREASURE, the two group's album sales reached 7 percent, recovering to the same level of that BIGBANG's during their active promotions.
Additionally, YG Entertainment has plans for BLACKPINK to expand its activities and fandom in both Southeast Asia and North America, while TREASURE to expand in Japan.
The new group lineups, who both have not been active for at least seven years since their debut, is highly profitable and that the two group's album sales is expected to have a leverage effect within the company due to its increased sales, revealed Researcher Park.
In addition, with BLACKPINK beginning the year with their online concert, high increase in content sales is to be expected.
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Researcher Park also commented on the YG Entertainment's operating margine, which is expected to rise from the 4.2 percent it received last year to 11.5 percent this year due to the increase margin sales in content.
BLACKPINK is the Most Streamed K-Pop Girl Group on Spotify
On April 6, BLACKPINK was named as the most streamed K-Pop girl group on Spotify, accumulating more than 2.86 billion streams since their debut in 2016.
Additionally, the group also topped the Spotify chart, "Spotify Global Daily Chart," where a hefty list of BLACKPINK's songs have been charting long, making them the longest charting female K-Pop act to dominate the list.
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What are your thoughts on the comments made by researcher Park Ha Kyung?
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Written by Robyn Joan
