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Cube Entertainment posts 5.7 Billion KRW loss in 2016, B2ST accounted for 45% of sales

By GhostWriter   Saturday, March 4, 2017   145,905   9,167   220
HyunA,B2ST,BTOB,clc,pentagon

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On March 4, etoday published an article outlining the financials for Cube Entertainment for the fiscal year of 2016. Since Cube Entertainment is a publicly traded company on the KOSDAQ, they must release financial statements to investors.


According to the Financial Supervisory Service's electronic disclosure system, Cube posted an operating loss of 5.7 Billion KRW (approximately $5 million USD) in 2016. This is a stark loss compared to the previous year as according to etoday, Cube posted an operating profit of 710 Million KRW (approximately $616,000) in 2015.


Cube Entertainment's sales declined by 13.1% in 2016 to 19.4 Billion KRW (approximately $16.83 Million) compared to the previous period in 2015. B2ST, who recently left Cube and will be promoting as Highlight under their own agency, accounted for 45% of Cube's total sales. Not only that but Cube also saw the departure of all the 4minute members except for HyunA due to contract expirations.


A rep from Cube stated, "Our sales decreased with our label artists' contracts coming to an end. We also suffered losses due to an expansion of our management portfolio and an increase in expenditures."


Earnings from Cube's affiliates such as Cube Japan and Starline Entertainment have also deteriorated. The THAAD missile issue and the strain on China-Korea relations impacting the stock prices of Korean companies have not helped matters as well. An insider in the financial sector stated, "China is continuously increasing its retaliation about the THAAD issue. As big companies such as SM and YG are also struggling, it's quite possible that Cube will not be able to recover."


Back in September of 2016, Cube had a stock price of 5,090 KRW ($4.42) per share. The stock has since dropped more than 63% and as of March 3, it traded at 1,880 KRW ($1.63) per share. Cube enjoyed a market cap of 135 Billion KRW (approximately $117 Million) during its 52-week high but it has now dropped to 49.96 Billion KRW (approximately $43.3 Million). At one point in 2015, Cube had a market cap rivaling that of JYP but JYP now enjoys a market cap that is more than 3 times larger than Cube.


It's a bit crazy to think that just a few years ago, people thought Cube would be joining the ranks of the "Big 3." It reminds me a bit of the American semiconductor company AMD. You see a meteoric rise and AMD is able to go toe-to-toe with giant Intel but then Bulldozer happened and AMD was in financial ruin. However, with a new management team, they refocused and are much the better for it. With the Zen architecture, they now have the potential to shake things up in the industry again. Cube is hoping that Hyunseung and the new B2ST trio can help turn things around for the company but there are some difficulties there. They still have one of the top K-pop artists in HyunA and there is still some hope for BTOB, Pentagon, and CLC to make a name for themselves.


Do you think Cube can turn things around?


SEE ALSO: HyunA says she loves to read internet comments

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Tags:

  1. HyunA
  2. B2ST
  3. BTOB
  4. CLC
  5. Pentagon
  6. cube entertainment


intricate Tuesday, March 7, 2017

oh please.. when will they stop using THAAD as an excuse?

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luvykpop Monday, March 6, 2017

I'm just sad because of Btob, what a lost of talents....pretty sure they deserve a better agency

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luvykpop Monday, March 6, 2017

not to mention hyuna's last comebacks were a major flop

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Arrow05 Monday, March 6, 2017

Cube Stock Price Down 32% After 4Minute Disbandment

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Lea10042016 Arrow05 27 days ago

Beast says HI! Beast's departure made more impact

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kacichan Monday, March 6, 2017

Hyuna won't be able to feed the whole of Cube herself though. CLC might be doing better but their chance to really be on top is basically nonexistent. Same goes for Pentagon. So really the only one who has a chance is BTOB. Hyunseung solo or with the potentional B2ST is unprofitable. The public hates him and new B2ST just can't work.. So what I'm trying to say is I'm worried about Hyuna and I the best for her.

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Lea10042016 kacichan 27 days ago

She doesn't make much herself. Being popular doesn't always translate into lots of money especially in hyuna's case when she doesn't have a proper tour (just 1 small scale NA tour so far) or tons of CF deals (only 1 CF deal so far) or good sales (more or less 10k copies/album, her last 2 comebacks didn't do well)

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sunbaeUmf Monday, March 6, 2017

hyuna and btob is their last hope

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ElvisPanda Monday, March 6, 2017

TAKE THAT CUBE... My inner BEAUTY laughing wholeheartedly... but i'm worried for current artist, BTOB and CLC... they are really tallented...

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xoliaxo Sunday, March 5, 2017

I worried for BTOB..

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Hyungshi Sunday, March 5, 2017

Somehow happy they are losing money for what they have done to B2ST and 4MINUTE

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centen Sunday, March 5, 2017

Well, obviously. Between the B2ST scandal, dissolution of their only successful girl group, Troublemaker being MIA for yet another year...

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Lea10042016 centen 27 days ago

Beast's scandal?

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