SEOUL, May 08 (AJP) - South Korea’s K-pop powerhouse YG Entertainment more than doubled first-quarter operating profit as revenue from BLACKPINK and rising contributions from younger artists boosted earnings, reinforcing expectations for a stronger comeback cycle this year despite weaker-than-expected net profit.
According to its earnings report released Thursday, YG Entertainment posted an operating profit of 19.4 billion won ($13.2 million) in the January-March period, up 103.9 percent from a year earlier.
Revenue jumped 46.9 percent to 147.1 billion won, while net profit slipped 4.6 percent to 9.8 billion won.
The company’s sales exceeded market expectations, while operating profit largely matched analyst forecasts. According to local market tracker FnGuide, analysts had projected first-quarter operating profit of 19.3 billion won and revenue of around 138.1 billion won. Net profit, however, missed the consensus estimate of roughly 15.0 billion won.
Compared with the previous quarter, operating profit and revenue fell 13.1 percent and 14.3 percent, respectively, reflecting fewer large-scale artist activities. Net profit, however, rose 23.9 percent from the prior quarter.
YG attributed the earnings growth to expanding monetization of artist intellectual property, including merchandise and licensing revenue from younger acts such as BABYMONSTER and TREASURE, alongside continued contributions from BLACKPINK-related touring and album sales.
BLACKPINK’s latest release, Deadline, sold more than 1.77 million copies in its first week, according to Hanteo Chart, underscoring the group’s enduring global commercial power.
The company is expected to maintain stronger earnings momentum in the second half of the year as major artists ramp up activities and touring schedules expand globally.
According to FnGuide, YG Entertainment is projected to post operating profit of 80.8 billion won and annual revenue of 590.1 billion won in 2026, surpassing its previous peak in 2023, when operating profit reached 79.5 billion won and revenue totaled 569.2 billion won.
BABYMONSTER is scheduled to begin its second world tour in Seoul in June before expanding into Latin America, Oceania and Europe. TREASURE is also expected to release a new album in June and continue solo and unit activities in the second half.
YG is additionally preparing to debut a new boy group in September as part of its broader push to strengthen its next-generation artist pipeline.
Shares of YG Entertainment closed down 0.2 percent at 50,200 won on Friday.
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