HYBE Revenue Up 38% in Q1 as New Boy Band Details Emerge

South Korea’s HYBE used its artists’ heavy touring schedule and strong merchandise and licensing revenues to overcome a slight drop in recorded music sales in the first quarter of 2025.

In the historically slow first quarter, total revenue rose 38.7% to 500.6 billion KRW ($350 million), the second-lowest quarterly revenue since the first quarter of 2023. Earnings before interest, taxes, depreciation and amortization (EBITDA) of 47.3 billion KRW ($33 million) was up 19% from the prior-year period. 

“Typically, the first quarter is a period when artists take a break after busy year-end activities and prepare for new albums and projects,” CFO Kyungjun Lee said during the earnings call Tuesday (April 29). “Therefore, in Q1, we had relatively fewer album releases and content offerings, thus posting a slightly lower profitability compared to the prior quarter.”

Recorded music revenue fell 5.9% to 136.5 billion KRW ($95 million), with streaming accounting for almost half of recorded music sales, said CEO Jaesang Lee. “While album sales fluctuate quarter over quarter depending on release schedules, steady streaming revenue serves as a stable source of profit. Streaming helps mitigate recorded music sales volatility in quarters like this quarter, when the number of new albums is relatively smaller.”

Concerts revenue jumped 252% to 155.2 billion KRW ($108 million). CEO Lee cited the “huge success” of tours in South Korea, the U.S., Japan and elsewhere in Asia by J-Hope, TOMORROW X TOGETHER, ENHYPEN and BOYNEXTDOOR. Additionally, J-Hope’s solo shows in Mexico “marked the beginning of active expansion to the Latin market,” he added. 

Merchandise and licensing improved 75.2% to 106.4 billion KRW ($74 million). Whereas concert-related merchandise was most popular in the past, HYBE has found success with artists’ character-driven merchandise, such as for Seventeen’s MINITEEN, a group of animal representatives for the band. “All the character products have been selling really quickly, and many items are in high demand, resulting in additional rounds of pre-order sales,” said CFO Lee. 

Content revenue fell 32.7% to 41.2 billion KRW ($29 million). It included sales of the Seventeen in Carat Land Memory Book and BTS 7 Moments, an archive of group members throughout 2022 and 2023 that includes a 66-minute video and 180-page photo book.

CEO Lee also teased details of Big Hit Music’s upcoming boy band that will debut in the third quarter of 2025. He described the five-member group as “a next generation creator crew that pursues self-expression in completely new styles and senses” and will perform “very original music that has not existed in the past.”

Separately, a seven-member, all-Japanese boy band called aeon will debut in June. Created by YX Labels, HYBE’s Japanese operation, the group formed from a TV show that aired in Japan on Nippon TV from February to April. 

HYBE has made a number of moves since the end of the first quarter. In early April, HYBE America announced a partnership with Alan Chikin Chow, known for his scripted YouTube series Alan’s Universe, to form a new pop group using HYBE’s K-pop development system. Days later, HYBE America signed a distribution deal with Jermaine Dupri’s So So Def Recordings. 

Last week, HYBE Latin America announced a music competition series, Pase a la Fama, that aims to discovery the next great Regional Mexican band. Pase a la Fama debuts June 8 on Telemundo. Earlier in the month, SEVENTEEN became the first K-pop group to headline the Tecate Pa’l Norte festival in Monterrey, Mexico, while TOMORROW X TOGETHER performed at the AXE Ceremonia festival in Mexico City. 

“These activities in the region are not just events, but also serve as the starting point for building a sustainable business foundation in Latin America,” said CEO Lee.