In 2024 Q4, JYP Entertainment recorded the highest quarterly revenue, reaching 199.1 billion won, which increased by 26.8% YoY. Operating profit decreased by 2.6% YoY to 36.9 billion won. Net Profit increased by 1,096.4% YoY to 26.2 billion won from the low base impact as Naver Z fair-value measurement decrease and goodwill impairment loss of Beijing Shinsung entertainment were both reflected in 2023 Q4.

In Q4, JYP Entertainment achieved record-high quarterly results driven by growth across all segments.

Physical album sales increased 1.4% YoY to 53.6 billion won, as artists including TWICE, Stray Kids, ITZY, DAY6, Xdinary Heroes, NEXZ released new albums. Streaming recorded its highest quarterly revenue driven by balanced growth across domestic and overseas streaming, reaching 22.2 billion won, which is 62.0% growth YoY. Superior performance led by DAY6 contributed to domestic streaming growth, 52.7% YoY. Overseas streaming increased by 63.9% YoY, as there was a one-time reflection of China revenue from a change in accounting principle. China streaming and digital revenues had previously been recognized evenly throughout the contract term. However, 11.4 billion won which includes old catalogues was fully reflected in this quarter, rather than evenly over the next two years.

Quarterly management revenue reached its highest from large-scale global concerts and appearances including fan concerts and fan meetings. Concerts revenue increased by 26% YoY to 38.0 billion won, as world tours including concerts in Japan were reflected. Especially in this quarter, all the concerts held in Japan were reflected, including 6 times by TWICE, 4 times by MISAMO, 6 times by Stray Kids, 10 times by NiziU, and 6 times by NEXZ. In 2025, we expect concerts in Japan to be recognized in the same fiscal quarter in which they take place.

Advertisement revenue increased by 13.7% to 8.8 billion won. Driven by NMIXX fan concerts and TWICE’s and ITZY’s fan meetings, appearance sales reached 9.1 billion won with growth of 95% YoY.

Merchandise revenue increased by 31.2% to 43.9 billion won due to the contribution of concert merchandise including Japan and the expansion of Blue Garage pop-up store events in Q4. Others grew by 62.7% YoY from the low base impact of 2023 Q4, which was due to changes in accounting principles for Japan fan club and Blue Garage shipping revenue. 

Despite the revenue growth, changes in the industry and the business structure resulted in a decrease in operating profit. Content production cost was raised by 18.6%, and artist fee increased by 20.9% YoY. Contraction of the industry’s physical album sales led to a rise in COGS ratio as pressure from fixed costs increased. Moreover, other expenses increased from a higher contribution of Blue Garage to the total merchandise revenue as manufacturing costs were reflected. Operating profit margin decreased to 18.5%. Labor expenses increased by 4.7 billion won, and a one-off ‘The Entertainer’ production cost from INNIT Entertainment, 4.7 billion won, was reflected in SG&A. In 2025 Q1, the remaining one-off production cost from INNIT Entertainment will be reflected. Our subsidiary, Blue Garage, recorded quarterly revenue of 28.9 billion won with operating loss of 1.2 billion, as it focused more on offline pop-up stores and investments including internalization of the platform.

Now we will provide a detailed explanation of the 2024 annual financial performance.

In FY 2024, revenue reached a record high of 601.8 billion won, a 6.2% increase compared to the previous year. Operating profit decreased by 24.3% to 128.3 billion won, and net profit decreased by 7.0% YoY to 97.7 billion won.

Despite a decline in physical album sales, streaming achieved record-high revenue from artist mass fandom expansion. Physical album revenue decreased by 27.5% YoY to 152.6 billion won. Streaming recorded the highest revenue of 64.6 billion won, with an increase of 23.8% from DAY6's superior performance.

Management segments also achieved the highest annual revenue with an increase in concert size. Concert revenue increased by 63.9% YoY to 103.6 billion won. Advertisements increased by 21.0% YoY to 34.3 billion won, and appearances increased by 90.2% YoY to 27.1 billion won. Both advertisement and appearances segments grew continuously from diversification of artists and increased public awareness. The merchandise segment achieved a record-high revenue of 132.6 billion won, a 15.8% increase YoY, through expansion of Blue Garage and the growth of overseas concert merchandise.

Regarding sales by region, Japan achieved the highest sales due to the recognition of large-scale concerts. Japan sales increased by 50.4% YoY to 174.2 billion won with reflection of a total of 75 Japanese concerts in 2024 annual results. 

Despite the increase in sales, margins decreased due to the decline in album sales within the industry, a higher proportion of management revenue, the introduction of new artist lineups, and investments in subsidiaries’ capabilities for mid-to-long-term growth. In the case of GPM, an increase in COGS of physical albums and change in the sales mix resulted in a 4.8%pt decrease YoY. The proportion of management revenue increased from 19% last year to 27% this year, and the contribution of Blue Garage within the total merchandise segment increased from 39% last year to 54% this year.

In SG&A expenses, labor expenses increased by 7.3 billion won YoY, and variable commission fees increased by 7.4 billion won as revenue expanded. Additionally, a one-time production cost of 4.7 billion won for ‘The Entertainer’ was reflected in Q4, resulting in a decrease in OPM to 21.3%. Blue Garage expanded its business throughout the year, achieving annual revenue of 90.7 billion won, a 46.5% increase YoY. However, the expansion of less profitable offline pop-up stores and continuous investments in internalization of the platform led to a decrease in operating profit by 54.1% YoY.

Now I will present major artists' activities and investment highlights. 

JYP Entertainment will focus on growing major artists’ global fandom and mass expansion while strengthening the artist portfolio by newly debut teams. Furthermore, we will expand our presence in overseas markets through localization projects and strategic partnerships in major markets, and we will secure mid-to-long-term growth drivers through investments to enhance business capabilities.

DAY6, the first K-POP band to perform at the Seoul Gocheok Sky Dome, is on their largest-ever third world tour. In May, they will perform at their first stadium venue in Jakarta. Streaming performances and expansion of world tour demonstrate them being an iconic K-POP band.

TWICE is diversifying their activities with group, unit, and solo projects, and Japanese unit MISAMO entered the Tokyo Dome in the shortest period of time since their debut in Japan. They are also planning a new world tour within the year to further strengthen their global presence.

Stray Kids is writing a new chapter in K-POP history by conducting a massive world tour with the highest-ever attendance of 2.2 million audiences at 55 concerts across 34 regions. They also plan to release two additional albums within the year. Stray Kids became the first K-POP group to receive Gold certification for a total of 5 albums from RIAA. Furthermore, their CD sales in the United States in 2024 ranked second overall, following Taylor Swift, achieving the highest ranking among K-POP artists and solidifying their status as top global artists.

ITZY has resumed activities as a complete group with Lia's return and has diversified their activities with Yeji solo. Active album releases and performances are planned for this year as well.

NMIXX is successfully holding fan concerts centered in Latin America and Asia, and their mini album is scheduled to be released today, March 17th. As their mass base expands and artist awareness rises, advertisement revenue continues to increase.

Kickflip, who debuted in January 2025, is showing a remarkable performance as a K-POP super rookie in a short period. They were selected as one of the "8 K-POP Rookies to Watch in 2025" by the Grammy Awards in the United States and have entered the top ranks of domestic and international music charts, solidifying their position as a representative 5th-generation boy group.

NiziU is actively engaged in global activities, releasing albums in both Japan and Korea. Starting in the second half of 2025, they plan to hold their largest-ever performances across 21 cities in Japan, further strengthening their fan base and solidifying their position as a national Japanese girl group. 

NEXZ, who debuted last year, achieved the accomplishment of winning the 'Best 5 New Artist' award at the Japan Gold Disc Award just about seven months after their debut in Japan. This year, they plan to release albums and hold concerts in Korea and Japan, carrying out activities in both countries simultaneously. They are also diversifying their merchandise by releasing official characters, NEXZOO, and official light sticks.

VCHA is planning a comeback within the first half of the year with content localization. Additionally, we are planning to launch the L2K project within this year, and the debut of the Chinese boy group Project C with their Chinese name Benfu Shaonian. Benfu Shaonian will consist of six members and they will start to build up their fandom with content releases from March before their official debut in H2 of this year. We are also preparing for new teams scheduled for 2026.

Furthermore, we aim to continue investing in enhancing business capabilities to secure mid-to-long-term growth drivers. We will strengthen the multi-label system within the company, enhance creativity capabilities, and optimize the existing business structure. Regarding Blue Garage, we are planning to improve the efficiency of the merchandise business, and their platform internalization and integration are expected to be completed in Q2. Our subsidiary, INNIT Entertainment, has signed exclusive contracts with the Top 5 from the audition program 'The Entertainer,’ two additional actors, and two trainees. We aim to create new mid-to-long-term growth drivers by nurturing various entertainers, including actors and singers.

Now, we will introduce the albums and concerts scheduled for 2025. The detailed album and concert schedules disclosed in this slide are based on information currently released through official social accounts and the media and are subject to change with future announcements. The number of annual physical album releases is expected to increase from 17 in 2024 to more than 20 in 2025, excluding Japanese albums.

In 2024, a total of 154 concerts were held, with a total attendance of approximately 2.1 million audiences. In 2025, we expect the highest number of performances ever, with more than 210 concerts, as well as the highest audiences ever, with more than 3 million, due to the increased global status of our artists and the expansion of the mass fandom. In 2025, we plan to continue our top-line growth based on the diversification of our revenue mix, including the highest number of concerts, audiences, increased merchandise sales, and with new projects in progress, we will prepare for mid-to-long-term growth drivers.