During an online conference call held on May 2nd to review HYBE’s first-quarter performance, CEO Park Ji-won addressed various pressing matters, including recent controversies and financial results. One of the key issues discussed was the suspicion surrounding ADOR CEO Min Hee-jin’s alleged attempt to seize management rights. CEO Park extended sincere apologies to shareholders for any concerns raised during HYBE’s journey toward establishing a robust multi-label system.
Regarding the controversy involving Min Hee-jin, CEO Park assured stakeholders that the company had undertaken a comprehensive audit and would implement necessary measures to effectively address the situation moving forward.
Despite facing challenges during the implementation of the multi-label system, CEO Park emphasized the significance of learning from setbacks to foster growth. While acknowledging potential doubts arising from recent incidents, he reiterated HYBE’s dedication to resolving issues and enhancing the efficiency of the multi-label structure.
In terms of financial performance, HYBE reported first-quarter sales totaling 360.9 billion won, marking a 12% decrease compared to the same period last year. This decline was primarily attributed to gaps in activity among existing artists and initial expenses associated with debuting new groups.
Operating profit also experienced a significant decrease of 73%, amounting to 14.4 billion won, mainly due to fluctuations in artist activities and debut-related costs.
Looking ahead, HYBE anticipates improvements in sales and operating profits as artists resume their activities and embark on world tours. Notably, several groups, including SEVENTEEN, TXT, BOYNEXTDOOR, ENHYPEN, and NewJeans, are preparing for comebacks. Additionally, BTS’s Jin is scheduled to complete his military service in June, which will pave the way for the group’s future endeavors.
Despite recent challenges, HYBE maintains optimism regarding its growth trajectory. The company is committed to overcoming obstacles and fortifying its multi-label framework to ensure sustained success in the global music industry.
