During an online conference call held on the morning of May 2nd to announce the first quarter performance, CEO Park Ji-won stated, “HYBE has faced both minor and major challenges as we pave the way for multi-labels.”He also apologized to shareholders for any concerns that may have arisen during this process.
In response to the allegations that ADOR CEO Min Hee-jin has taken control of management rights, CEO Park clarified, “The company has conducted a thorough audit and has confirmed the situation. We will proceed with necessary actions from this point on.”
Moreover, CEO Park acknowledged, “Throughout the development of our multi-label system, we have faced numerous challenges and have successfully overcome them, leading to growth. Despite any skepticism that may arise due to this incident, we are committed to addressing the issue effectively and continuously evaluating areas for improvement in our multi-label system.”
On April 22nd, HYBE declared that they had uncovered indications of an attempt to take over management control by CEO Min Hee-jin and executives of ADOR. In response, HYBE called for a board meeting to discuss the replacement of ADOR’s management and also carried out an internal audit. The interim audit results, released on April 25th, revealed solid evidence of plans led by CEO Min Hee-jin to seize ADOR’s management rights from HYBE.
Despite these claims, CEO Min Hee-jin held an emergency press conference on the same day and refuted the allegations. She clarified that she was under audit after filing an internal complaint against HYBE and dismissed the documents presented as evidence as merely private conversation memos.
At the same time, HYBE revealed that its sales for the first quarter of 2024 reached 360.9 billion won, showing a decline of approximately 12% from the previous year’s first quarter. However, this decrease was balanced out by the strong debut of TWS and ILLIT, as well as the temporary hiatus taken by some of the company’s senior idols.
During the same period last year, operating profit was 14.4 billion won, which is 73% lower this year. The decrease can be attributed to the lack of activity from existing artists and the initial costs associated with debuting new groups.
HYBE anticipates an improvement in both sales and operating profits starting from the second quarter, as artists resume their activities and world tours begin. In April, SEVENTEEN, TXT, and BOYNEXTDOOR made comebacks while ENHYPEN and NewJeans are also getting ready for theirs. Additionally, BTS’s Jin is expected to finish his military service in June.
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