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Posted by Germaine-Jay Tuesday, February 23, 2021

BTS' label Big Hit Entertainment has best financial year despite COVID-19 pandemic

AKP STAFF

BTS' label Big Hit Entertainment has had the best financial year despite the COVID-19 pandemic.

According to Big Hit's financial report for 2020, the label officially recorded a 36% overall increase in revenue, a 44% increase in operating profit, and a 19% increase in net profit compared to the previous year. Reports say the company brought in 796.3 billion Won ($715,737,214.18 USD) in revenue, an operating profit of 142.2 billion Won ($127,804,141.26 USD), and a net profit of 86.2 billion Won ($77,481,818.20 USD). 

The agency also recorded its highest ever fiscal quarter in the fourth quarter of 2020 with 312.3 billion Won ($280,714,290.30 USD) in revenue and 52.5 billion Won ($47,189,102.10 USD) in operating profit. Big Hit Entertainment artists like BTS, SeventeenTXT, and ENHYPEN sold 13.22 million albums in total, which means about 40% of the label's revenue could be attributed to album sales. 

Though performances and concerts decreased due to the ongoing pandemic, sales of merchandise and fan club related goods rose by over 50%. 

Big Hit Entertainment stated, "We were able to achieve our highest performance ever due to our solid business structure even during the coronavirus pandemic. We have a strategy that will continue expanding our business through acquisitions alongside the constant growth of our Big Hit label artists. We'll continue to grow in the future through various ways, including cooperation with external partners like the recent transfer of Naver's V Live into Weverse company and our partnership with Universal Music Group."

  1. BTS
  2. BIG HIT ENTERTAINMENT
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Kirsty_Louise
Kirsty_Louise23,155 pts Tuesday, February 23, 2021 3
Tuesday, February 23, 2021

That’s really damn impressive! Tours are usually their biggest money maker and even when they couldn’t go ahead they have still had a really successful year. To be fair the money I had set aside for tickets absolutely went on merch, seems I’m not the only one lol

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lugaia
lugaia1,150 pts Tuesday, February 23, 2021 0
Tuesday, February 23, 2021

Congrats to BigHit on adapting their business activities wisely to the conditions of the market by choosing the right type of music-related promotions for their artists (and especially their big bread winners BTS), by making many calculated investments in the infrastructure of kpop (especially in technology) and by filing for IPO at a time of booming capital markets activity in SKR. This achievement is all the more impressive as concerts are notoriously the item that brings the most revenue for a music label - and they could do virtually zero of those in the past financial year, meaning that they did everything else so well that it turned out to be the best financial year anyway.

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