It was recently revealed that YG Entertainment's stock price will only be worth 80% of SM Entertainment's. Shinyoung Securities reported on the 14th that once YG Entertainment is registered with KOSDAQ on the 23rd, their estimated stock price will be roughly $58 USD per share. Considering that YG has had less promotions overseas and restricted group member promotions, they inevitably came up 20% short in comparison to SM Entertainment. However, it was also reported that YG was the second most successful entertainment agency, boasting a sales boost of 55.5% from 2008 to 2010, and a 173% increase in business profits. Their sudden jump in profit is mainly credited to their boy band, Big Bang. Reviewing the first half of 2011, Big Bang alone brought in 52% of YG Entertainment's income; 60% if you include each member's solo projects, and their albums are now selling over 4 times more compared to back in 2009. YG's girl group 2NE1 currently brings in 40% of what Big Bang brings in for total earnings, but with their escalating fame, it is estimated that they will be able to bring that percentage up to 70% by this time next year. Shinyoung Securities also reported that the agency managed to earn a high profitable income this year compared to their lack of artist promotions and credited their success to the bond between the YG Family artists. It's beneficial but risky at the same time that manpower is the drive behind YG's success, however, the chances of YG artists surviving competition were predicted to be high. Source & Image: Herald via Nate
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Posted byMonday, November 14, 2011
YG Entertainment sales increase due to Big Bang
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