HYBE (formerly called Big Hit Entertainment) has been predicted to earn a total profit of 100 billion won in the last quarter of this year if the company resumes offline concerts.
HYBE Predicted to Earn 100 Billion Won in Every Quarter of 2021 If Offline Concerts Start
On May 24, Hana Financial Investment presented a BUY rating and a target price of 360,000 won for HYBE, home to numerous artists such as BTS, TXT, SEVENTEEN, ENHYPEN, and more.
Researcher Lee Ki-Hoon first mentioned the earnings from the concerts held by BTS and Big Hit Labels last year.
In October, BTS held "MAP OF THE SOUL ON:E," while Big Hit Labels conducted "2021 NEW YEAR'S EVE LIVE."
ALSO READ: HYBE Reveals Sales and Profit for First Quarter of 2021 and Plans for Ithaca Holdings
The content sales of these two online concerts, which garnered 990,000 people overall, recorded 80.9 billion won and an MD/license of 67.3 billion won. This amount is much higher than the earnings from concerts in 2019 when Big Hit only gained 78 billion won.
With the assumption that offline concerts will be conducted in the fourth quarter of this year, the researcher stated that HYBE is expected to gain an operating profit of 100 billion won.
Lee Ki-Hoon added that the combined sales would be greater if both online and offline concerts will be held. He also said that concerts of Justin Bieber and Ariana Grande, artists under Ithaca Holdings, would be significant contributions to the company's earnings, as well.
READ MORE: HYBE Selected as the Most Influential Company in the World by TIME Magazine
In addition to offline concerts, Weverse, the new global fan community, would also have an important role in the operating profit of HYBE, according to the researcher.
When Weverse was launched last year, fans quickly joined the platform to stay connected with their favorite artists amid the COVID-19 pandemic. In one year and a half, Weverse already had more than 10 million users.
Users are expected to increase now that artists under Ithaca Holdings and YG Entertainment will be joining Weverse. Additionally, their merchandise might also become available on the Weverse Shop.
HYBE's Earnings Expected to Grow Starting from Second Quarter of 2021
HYBE is also predicted to see an increase in earnings in the following quarters of 2021, thanks to the full lineup of comebacks from Big Hit artists.
On May 25, a researcher from IBK Investment and Securities stated that comebacks of Big Hit artists are expected to boost HYBE's earnings starting this second quarter.
YOU MIGTH ALSO LIKE: HYBE to Open Museum 'HYBE INSIGHT' in May
This past April, SEVENTEEN, NU'EST, and ENHYPEN have already made their comebacks. And this month, BTS released their digital single "Butter," which is currently dominating major global charts.
Other upcoming comebacks will be from TXT with their second studio album "The Chaos Chapter: FREEZE," and SEVENTEEN again with their eighth mini-album "Your Choice."
Aside from the Big Hit Music's artists, Canadian singer Justin Bieber and American singer Ariana Grande are said to have scheduled plans in the second and third quarters, which would also be an important factor in the increase of HYBE's 2021 quarterly profit.
What are your thoughts about these predictions on HYBE's 2021 profit? Tell us in the comments!
For more news updates about other K-Pop news, always keep your tabs open here at Kpopstarz.
Owned by Kpopstarz.
Written by Mhaliya Scott
