[News Culture] HYBE has posted its strongest quarterly financial results to date, driven by BTS's world tour, expanding merchandise sales and growing contributions from artists across its international labels.
The South Korean entertainment company reported preliminary consolidated revenue of 1.526 trillion won ($1.08 billion) for the third quarter of 2026, up 109.8% from a year earlier. Operating profit reached 188.5 billion won, reversing a loss of 42.2 billion won in the same period last year.
Both figures surpassed the company's previous quarterly records, set in the second quarter when BTS launched its ARIRANG world tour. Revenue rose from 1.45 trillion won in the preceding quarter, while operating profit increased 10.3% from 170.9 billion won.
According to the preliminary earnings disclosure filed on November 3, HYBE generated 3.674 trillion won in revenue during the first nine months of 2026, moving closer to becoming the first South Korean music company to record 4 trillion won in annual sales.
Profitability, however, presented a more complicated picture. Third-quarter net income totaled 11.3 billion won, down sharply from 109.8 billion won in the preceding quarter, largely reflecting foreign-exchange losses outside the company's core operations.
For the first nine months, HYBE reported operating profit of 162.9 billion won. The figure included approximately 255 billion won in one-time share-based compensation expenses recognized in the first quarter. Excluding those noncash charges, adjusted operating profit reached 417.9 billion won, according to the company. The adjusted figure is a supplemental measure and does not replace reported operating profit.
Live entertainment remained the company's principal growth driver. Concert revenue reached a quarterly record of 726.8 billion won, supported by BTS's stadium performances across North America and Europe, where individual shows attracted audiences of up to 70,000.
Touring activity by ENHYPEN, LE SSERAFIM, KATSEYE and other HYBE artists further strengthened the segment. The broader concert business helped the company translate its international fanbase into revenue across multiple markets.
Recorded music also contributed to the results. Album and digital music revenue totaled 282.8 billion won, supported by new releases from ENHYPEN and other artists. ENHYPEN's THE SIN : BLISS topped the Billboard 200, while CORTIS's second EP, GREENGREEN, surpassed 4 million cumulative sales.
Merchandise and licensing revenue reached a record 334.6 billion won. HYBE attributed the performance partly to improvements in its merchandise supply chain and the introduction of Weverse Pickup, which made concert merchandise purchases more convenient for fans.
The results also reflected the company's continued investment in its "multi-home, multi-genre" strategy, which develops artists and businesses within individual markets rather than relying solely on exports from South Korea. KATSEYE, developed for the U.S. market, and Japan-based &TEAM are among the acts contributing to that international expansion.
KATSEYE's third EP, WILD, reached No. 1 on the Billboard 200, providing another example of HYBE's effort to build commercially successful artists beyond the traditional K-pop market.
HYBE described the results as evidence of its transition toward a global entertainment platform business, pointing to the combination of artist-driven revenue and higher-margin activities such as merchandise and licensing.
The company has also launched HYBE Global Label Services, an initiative intended to provide marketing and operational support for artists across its international businesses.
Looking ahead, BTS is scheduled to continue its world tour through the first half of 2027 while pursuing additional music and other projects. HYBE expects its expanding roster, international production network and fan-focused businesses to support future growth.
The latest earnings demonstrate the scale of HYBE's live entertainment operations, although foreign-exchange exposure and nonrecurring expenses remain important factors in assessing its overall profitability.
Reported by News Culture M.J._mj94070777@nc.press
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