This article first appeared on GuruFocus.

Revenue: KRW698.3 billion, up 40% year over year.

Adjusted Operating Profit: KRW58.5 billion, up 170% year over year.

Recorded Music Sales: KRW271.5 billion, up 99% year over year.

Concert Sales: KRW88.7 billion, down 43% year over year.

Merchandise and Licensing Revenue: KRW137.4 billion, up 29% year over year.

Content Sales: KRW105.9 billion, up 157% year over year.

Weverse MAU: 13.37 million, up 20% quarter on quarter.

Total Payment Volume on Weverse: Grew 80% quarter on quarter.

Monthly ARPPU on Weverse: Increased by 8%.

Release Date: April 29, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

HYBE (XKRX:352820) posted a record-high Q1 revenue of KRW6,098.3 billion, driven by BTS’s comeback.

BTS’s new album ‘Arirang’ achieved significant success, topping the Billboard 200 charts for three consecutive weeks.

The Gwanghwamun Comeback Live event recorded a global viewership of 18.4 million, showcasing BTS’s strong fan engagement.

HYBE’s localization strategy in the US is proving successful, with KATSEYE’s album sales exceeding expectations.

Weverse, HYBE’s fan platform, achieved a record high in MAU with 13.37 million, indicating strong user engagement and growth.

Negative Points

Concert sales were down 43% year over year due to major artists’ tours not beginning in full swing.

There are concerns about potential increases in artist fees impacting overall profit margins.

The size of concert sales revenue appears smaller despite a similar number of concertgoers year over year.

HYBE’s artist lineup on the Weverse platform is not expanding as expected, which may limit future growth.

The company faces challenges in managing profit margins amidst increased investments for overseas IP acquisition.

Q & A Highlights

Q: With BTS’s comeback, their contribution to revenue is expected to increase. Are there concerns about rising artist fees impacting margins, and how do you foresee concert revenues in the second quarter? A: Lee Kyung-Jun, CFO, explained that the gross profit margin in Q1 was strong not only due to BTS but also other artists like ENHYPEN. He does not foresee a deterioration in margins in Q2 as BTS concerts and other artists’ activities will continue. CEO Lee Jae Sang added that strategic concert setups, like the 360-degree stage, help improve margins by accommodating more fans without increasing costs.

Story Continues

Q: Concert sales revenue seems smaller despite similar attendance year-over-year. What factors contributed to this? A: CEO Lee Jae Sang noted that various factors affect revenue, such as concert location and performer. For instance, BTS concerts in North America can command higher ticket prices, impacting revenue positively.

Q: How does HYBE plan to manage margins given past pressures from overseas investments, and what are the plans for 2026 and 2027? A: CFO Lee Kyung-Jun stated that overseas investments will continue but at a reduced scale compared to 2025. Initial investments are high, but costs decrease with experience. CEO Lee Jae Sang added that investment decisions are carefully timed based on market readiness.

Q: Weverse’s MAU is growing, but the artist lineup isn’t expanding as expected. Can you elaborate on this trend? A: CEO Lee Jae Sang explained that MAU growth is driven by attracting new fans and expanding artist activities. New artists and genres are being added strategically, such as BINI and SB19 from Southeast Asia, to boost MAU.

Q: How does HYBE plan to utilize Weverse’s DM feature, and why aren’t all artists using it? A: CEO Lee Jae Sang mentioned that DM is a valuable tool but not suitable for all artists due to varying communication preferences. HYBE works with labels and artists to determine the best communication methods for each.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.