YG Entertainment to Launch New Groups in Japan, Korea, and Thailand Amid 2024 Profit Loss

YG Entertainment’s Projected Financial Outlook: Challenges and Future Growth

On December 17, Leading Investment Securities forecasted a challenging year ahead for YG Entertainment, predicting a financial loss attributed primarily to the absence of BLACKPINK and slower growth from its other artist groups. Nevertheless, optimism is brewing for the upcoming year, spurred by a potential BLACKPINK comeback, the emergence of new groups like BABYMONSTER, and an expanded roster of artists.

Current Financial Projections

For the current year, forecasts suggest a significant downturn in YG Entertainment’s consolidated sales, anticipated to drop by 36.3% year-on-year to approximately 362.5 billion KRW (around 252.3 million USD). Additionally, the company is expected to face an operating loss of about 24.7 billion KRW (roughly 17.2 million USD). Analysts attribute this underperformance largely to BLACKPINK’s inactivity during the year.

Anticipated Rebound in 2024

Looking ahead, YG Entertainment is poised for recovery with several growth factors on the horizon. Crucially, BLACKPINK is scheduled to return to full-group activities in the latter part of 2024, which will include an extensive global tour. This sentiment was echoed by Yoo Sung-man, a researcher at Leading Investment Securities, who noted the potential scale of the tour following the global success of BLACKPINK member Rosé’s recent hit, ‘APT.’

“Considering the recent global success of BLACKPINK member Rosé’s song ‘APT.,’ the group’s tour is likely to be larger than expected. Despite adjusted revenue-sharing ratios following contract renewals, this will significantly contribute to improved overall performance.”

BABYMONSTER’s Rising Influence

In addition to BLACKPINK’s expected return, BABYMONSTER is rapidly solidifying its position in the industry. The group recently released its first full album, which sold 680,000 copies initially, nearing a total of 1 million copies—a milestone that propels them into million-seller territory. This burgeoning fanbase signals a bright future for the group.

Additional Group Developments

Furthermore, encouraging signs are also present for other YG artists such as TREASURE and WINNER. TREASURE, despite a delayed comeback this year, is set to resume activities in the first half of next year, while WINNER is gearing up for a full-group return in early 2025. Such developments are anticipated to bolster YG’s competitive edge.

New Artist Lineup Initiatives

To further enhance its roster, YG Entertainment intends to broaden its intellectual property (IP) reach by introducing new groups. Yoo mentioned that the company will commence these debuts next year, with preparations underway across Korea, Japan, and Thailand, indicating YG’s strategy to revitalize its artist lineup.

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