During an online conference call on May 2nd to discuss first-quarter performance, HYBE CEO Park Ji-won addressed recent controversies, including the suspicion of ADOR CEO Min Hee-jin seizing management rights. CEO Park expressed apologies to shareholders for the concerns raised during HYBE’s journey in establishing a multi-label system.
Regarding the Min Hee-jin controversy, CEO Park assured stakeholders that the company had conducted a thorough audit and would take necessary measures moving forward to address the situation effectively.
Despite challenges encountered while building the multi-label system, CEO Park emphasized the importance of learning from trials and errors to facilitate growth. He acknowledged doubts that may arise due to recent incidents but reaffirmed HYBE’s commitment to resolving issues and improving the multi-label system.
In terms of financial performance, HYBE reported first-quarter sales of 360.9 billion won, reflecting a 12% decrease from the same period last year. This decline was attributed to activity gaps among existing artists and initial costs associated with debuting new groups.
Operating profit also decreased by 73%, amounting to 14.4 billion won, primarily due to artist activity fluctuations and debut-related expenses.
Looking ahead, HYBE anticipates improvements in sales and operating profits as artists resume activities and begin world tours. Several groups, including SEVENTEEN, TXT, BOYNEXTDOOR, ENHYPEN, and NewJeans, are gearing up for comebacks. Additionally, BTS’s Jin is set to complete his military service in June, paving the way for the group’s future activities.
Despite recent challenges, HYBE remains optimistic about its growth trajectory, aiming to face obstacles and strengthen its multi-label framework for sustained success in the global music industry.
