BTS Return Earns HYBE Highest First-Quarter Revenue Ever

South Korea’s HYBE said on Wednesday (April 29) that the company racked up 698.3 billion KRW ($470.2 million) in first-quarter revenue, marking its highest-ever Q1 revenue tally thanks largely to the comeback of BTS and the group’s fifth studio album, ARIRANG, and world tour.

Revenue from artist-driven activities, including recorded music, concerts and ads, increased 25% year over year to 403.7 billion KRW ($271.9 million), accounting for 58% of HYBE’s total revenue for the quarter. Recorded revenue also nearly doubled year over year to 271.5 billion KRW ($182.3 million), while revenue from indirect artist activities (including official merchandise, licensing, content and fan club memberships) rose 66% year over year due to an increase in sales of BTS tour merchandise.

BTS’ ARIRANG, released on March 20, debuted at No. 1 on the Billboard 200 and remained there for three consecutive weeks, driving much of HYBE’s quarterly earnings. The album’s first single, “SWIM,” also entered the Billboard Hot 100 at No. 1, marking the group’s seventh No. 1 on the chart. ARIRANG opened with 641,000 equivalent album units earned, with 532,000 in pure album sales (purchases of physical and digital albums). With the release, BTS earned the biggest sales week for an album by a group in more than a decade.

BTS launched its ARIRANG world tour at Goyang Stadium in Goyang, South Korea, on April 9, kicking off a run that’s expected to include 85 stadium dates.

HYBE experienced a first-quarter operating loss of 196.6 billion KRW ($133 million), marking a shift for the company, which saw an operating profit of 21.6 billion KRW ($14.6 million) last year. The swing was due in part to a charge of 225 billion KRW ($173 million) after Chairman Bang Si-hyuk gifted shares from his personal holdings to fund performance bonuses for employees. The item was characterized as a one-off, non-cash entry. Adjusted operating profit landed at 58.5 million KRW ($39.6 million), with an adjusted operating margin of 8.4%.

Weverse, the global superfan platform overseen by HYBE, saw an increase in monthly active users with a record 13.37 million in the first quarter, marking 20% growth quarter-over-quarter.

Within the rest of HYBE’s artist portfolio, ENHYPHEN’s seventh mini album, THE SIN: VANISH, became the group’s fourth double-million seller. Meanwhile, CORTIS’ debut album, COLOR OUTSIDE THE LINES, surpassed 2 million copies in cumulative sales.

HYBE America saw rapid growth with KATSEYE, the girl group that recently surpassed 32 million monthly listeners on Spotify, while their EPs, SIS (Soft Is Strong) and BEAUTIFUL CHAOS, sold a combined 1 million copies. The quarter also saw the relaunch of BMLG as Blue Highway Records, led by Jake Basden as CEO.

Here are the key takeaways from HYBE’s first quarter earnings report: