[비즈한국] HYBE352820 has achieved its highest-ever Q1 revenue, fueled by the return of BTS. While artists under its subsidiary labels successfully defended the company’s performance during the BTS hiatus, demonstrating the potential of the multi-label system, the 'BTS effect' became prominent across major business segments—such as albums, digital music, merchandise (MD), and content—following their return. With the surge in revenue after the group's comeback, observers suggest that HYBE’s dependency on BTS remains significant.
The multi-label system is a structure in which a company operates multiple production entities or labels, each of which plans, produces, and manages artists relatively independently. It is effective for expanding the revenue base by nurturing multiple artists simultaneously. During the BTS hiatus, HYBE leveraged its labels, including Big Hit Music, Pledis, and Source Music, to cultivate major artists such as Seventeen, Tomorrow X Together, and Enhypen, as well as subsequent lineups like Le Sserafim, ILLIT, and TWS.
This achievement is particularly evident in the growth of concert and MD revenue. On an annual basis, HYBE's concert revenue reached 763.9 billion KRW in 2025, a 69.4% increase from 450.9 billion KRW in 2024. MD and licensing revenue also rose by 35.8%, from 420.2 billion KRW in 2024 to 570.6 billion KRW in 2025. This indicates that tours by major artists like Seventeen, Tomorrow X Together, and Enhypen, along with concert merchandise and group-specific character products, successfully expanded the revenue base during the BTS hiatus.
However, performance after the return of BTS demonstrated that, regardless of the success of the multi-label system, the influence of BTS remains substantial. Sales of the new BTS album 'ARIRANG' and its success on global charts significantly boosted album and digital music revenue. In Q1 2026, HYBE's album and digital music revenue reached 271.5 billion KRW, an increase of 98.9% compared to the same period last year.
MD and licensing revenue hit 137.4 billion KRW, while content revenue recorded 105.9 billion KRW. The results reflected demand for BTS light sticks, comeback-related live streaming, and documentaries. The monthly active users (MAU) of the fan platform Weverse also increased to 13.37 million following the BTS comeback. This once again highlighted that BTS is a key IP impacting all of HYBE's core business areas.
Amidst this trend, HYBE's consolidated revenue for Q1 2026 reached 698.3 billion KRW, up 39.5% from the same period last year. This figure surpasses the previous Q1 high of 500.6 billion KRW recorded in 2025. While an operating loss of 196.6 billion KRW was recorded, this was primarily due to a one-time accounting cost of 255 billion KRW related to employee stock grants. Excluding this, the adjusted operating profit was 58.5 billion KRW, a 170.8% increase compared to the same period last year.
While the financial industry acknowledged the success of HYBE's multi-label system, analysts pointed out that the dependency on BTS remains high. Park Jun-hyung, a researcher at SK Securities, analyzed, "During the period of BTS's absence, HYBE's multi-label strategy contributed to defending its performance. While the multi-label strategy has successfully taken root so far, HYBE's reliance on BTS remains high. "
The return of BTS acted as a clear momentum for HYBE's performance. It confirmed that the growth axis of HYBE still lies with BTS, as it boosted not only albums and music but also MD, content, and platform metrics. As expansion in concerts, MD, and secondary licensing revenue is expected, the 'BTS effect' is likely to remain a key variable driving HYBE's performance for the time being. However, if the concentration on a specific IP increases again, structural risks could also rise.
Unlike in the past, the activity cycles of K-pop boy groups have lengthened. The number of teams continuing long-term activities beyond the 'seven-year jinx'—the point when exclusive contracts typically expire—is increasing. There are teams like EXO and Big Bang that have been active for over 10 years. BTS also maintains its global influence, and there is no reason to worry about the continuity of their activities in the short term. However, given that BTS is a high-seniority IP that has already debuted over 10 years ago, it is difficult for HYBE to continue explaining its long-term growth structure solely around BTS.
Ultimately, the key lies in the further growth of the multi-label system. Existing artists such as Le Sserafim, Tomorrow X Together, Enhypen, and ILLIT, as well as new and global lineups, must increase their independent contribution to profits. Weverse, commerce, and content businesses must also establish a stable profit base that does not rely on BTS-related events. For the multi-label system to remain more than just a defense mechanism during hiatuses, it must demonstrate not only external growth but also the diversification of revenue sources and improved profitability.
HYBE stated that the Q1 results were the outcome of the BTS return effect combined with the balanced performance of multi-label artists and the growth of rookie artists. A HYBE official said, "These results are the outcome of complex factors, including the activities of BTS, as well as the balanced performance of multi-label artists and the rapid growth of rookie artists." They added, "Based on our 'Multi-Home, Multi-Genre' strategy, HYBE is proving its stable profit structure that is not skewed toward any specific artist. We plan to continue presenting new artists and high-quality content in the future."