Hybe shares jump 10% as K-pop sensation BTS' tour lifts earnings hopes
BTS' world tour and rising global demand for newer K-pop acts are fueling earnings expectations, sending Hybe shares soaring.
TL;DR
- Hybe's share price increased by 10% due to positive third-quarter earnings expectations.
- Third-quarter revenue is projected to reach 1.5 trillion won ($1.11 billion), a 106% increase from the previous year.
- Operating profit is forecast at 172.2 billion won, with concert revenue expected to nearly triple.
- BTS's world tour and tours by newer acts like Enhypen, Katseye, and Cortis contributed to a potential quarterly record in concert attendance.
- Western markets accounted for over 70% of concert attendance for the first time.
- Despite higher costs, Hybe is expected to maintain a double-digit operating margin.
- Profitability of newer bands in Western markets is seen as key to reducing reliance on BTS.
- Strong demand for additional BTS concerts and positive growth among younger artists are boosting earnings forecasts.