South Korean entertainment company Hybe saw its stock price rise by 10% on Friday. Investors are weighing the prospects for its third-quarter performance, with optimism mainly stemming from the global concerts of its artists.
Local securities firms iM and Securities expect that Hybe's revenue in the third quarter will reach 1.5 trillion Korean won (1.11 billion US dollars), a 106% increase from the same period last year; operating profit is expected to be 172.2 billion Korean won. The firm also predicts that concert revenue will reach 717 billion Korean won, nearly tripling from the same period last year.
On Friday, the stock price increase outperformed the South Korean Composite Stock Price Index Kospi, which rose by 2.9%.
The world tour currently being undertaken by BTS includes 16 stadium performances in North America and 8 performances in Europe during the third quarter.
The report indicates that this tour, combined with the expanding tours of new groups such as Enhypen, Katseye, and Cortis, brought the number of concert attendees in that quarter close to 3 million, potentially setting a record for the company for a single quarter.
The report states that for the first time, Western markets accounted for over 70% of the total concert audience, reflecting the increasing internationalization of Hybe as new artists gain influence in North America and Europe. Despite facing unfavorable exchange rates, concert revenues, merchandise sales, and licensing income are expected to still reach record levels.
Concert Profit Margin Outlook
Although paying higher royalties to established artists and the increased costs of new groups' debut tours are expected to suppress profit margins, the brokerage firm still predicts that Hybe will maintain double-digit operating profit margins, supported by the scale of the BTS world tour.
Analyst Jiwoo Oh stated after Hybe announced its second-quarter results that although concerts and public events incur higher costs for the company due to higher分成 with artists, the business of related merchandise, content, and fan clubs can significantly boost the company's profits.
She also pointed out that Hybe achieved a 11.8% operating profit margin in the second quarter of 2026, with direct income from artists accounting for 72% of total sales, of which concerts alone accounted for 45% of total sales.
She added, "We believe that this indicates that the operational leverage at the stadium level is sufficient to offset the higher cost base associated with the concert."
After Hybe announced its second-quarter results on July 28th, the stock price plummeted, with the market value evaporating by up to $1.96 billion in less than 24 hours.
Analysts at the time stated that although revenue and operating profit both reached record highs, the profit margin not meeting expectations triggered selling pressure.
New groups are making a push
Reports from iM and Securities indicate that the profitability of new groups such as Katseye and Cortis in the Western market may be the key to reducing the company's dependence on BTS.
However, the strong demand for additional performances by BTS in Japan and the Middle East, as well as the increase in encore shows, may also lead iM and Securities to raise their profit forecasts for 2027.
Kyobo Securities expects that the revenue from the third-quarter concert of Hybe will reach 724.4 billion Korean won, and is optimistic about the company's new artists, stating that "as the BTS tour progresses, the growth of young artists is becoming more apparent."
The brokerage firm stated that Cortis currently sells an average of about 600,000 albums per month, demonstrating strong fan demand; meanwhile, Katseye continues to expand its overseas influence by leveraging global streaming services and album performance.
