JYP Entertainment has achieved record-high quarterly results. 3Q revenue increased 22% yoy to 171 billion won and operating profit increased 10% yoy to 48 billion won, setting a new record-high quarterly revenue and operating profit. 3Q net profit also increased 12% yoy to 39 billion won.

In this quarter, we have achieved relatively balanced growth across different revenue segments, driven by artist portfolio diversification, and an increase in major artists’ activities such as concerts and album releases. In particular, both Korea and Japan market recorded all-time high sales, driving the company’s overall growth.

Next, we will provide details on revenue per segment and region.

3Q album sales recorded high yoy growth of 27% as major artists released new albums. DAY6’s outstanding chart performance drove domestic streaming sales by 86% yoy. 

Concert revenue also increased significantly by 88% yoy. With a large increase in concerts, MD sales expanded 58% yoy, achieving record-high quarterly revenue. In addition, other management revenue such as advertisement, continued incremental growth with artist diversification and mass audience expansion.

By region, Korea and Japan revenue set new all-time high quarterly revenue and helped to lead overall company’s growth. Especially in Japan, quarterly MD revenue increased significantly, reaching a new high level.  

As highlighted, we recorded the highest quarterly operating profit of 48 billion won. With significant growth of top line, profitability recovered back to previous level. Despite the rise in contents production costs and other expenses, GPM expanded up to 50% level with increase in revenue. Also, we achieved a high OPM level of nearly 30%.

JYP360 recorded 3Q sales of 32 billion won and an operating profit of 3.4 billion won. In addition, profitability of JYP360 improved, and its OPM reached 11% this quarter.

Next, we will provide a detailed breakdown of revenue. 

Album revenue was 55 billion won with 27% yoy growth from new album releases from Stray Kids, NMIXX, Tzuyu Solo, and DAY6.

Domestic streaming revenue reached the highest quarterly level of 3 billion won. DAY6, as they entered into 10th year after the debut, achieved a new career-high, dominating the domestic charts with both new releases and catalogues.  

Concert revenue was 22 billion won from Stray Kids world tours and sizable Japan fan meetings, DAY6 and ITZY’s world tours. 

From the expansion of concerts, MD recorded an all-time high quarterly revenue of over 50 billion won with 58% yoy growth. Japan MD sales reached the highest level from TWICE stadium concerts and NiziU, NEXZ fan meetings. In addition, a reflection of SKZOO online MD sales from JYP360 further expanded the growth of the company's MD sales.

With artist diversification and mass audience expansion, appearances and advertisement revenue continued to record incremental growth.

Others segment decreased by 9 billion won yoy. The factors that resulted in the decrease were 1) the reclassification of JYP360 shipping revenue since 4Q of 2023, 2) a change in the revenue recognition method of JYP Publishing’s overseas sales, and 3) Japan fan club sales. JYP Publishing’s overseas revenue which was previously recognized in 1Q & 3Q,  has been adjusted accordingly to accrual accounting principles and is now reflected proportionally per each quarter. In addition, revenue recognition of the Japan fan club, which was previously recognized as a lump-sum, has been changed to a period-based method.

Next we’ll provide details of expenses. 

Content production cost and other expenses increased by 13 billion won and 2 billion won. Despite such increases, the company achieved a significant GPM of 49.2%.  

Labor cost within SG&A rose by 4 billion won yoy. Within labor cost, fixed cost increased by 2 billion won. Commission fee expanded by 5 billion won from a rise in JYP360 related fees, a variable cost, which increases as JYP360 revenue grows. However, even with the rise in SG&A, JYP Entertainment recorded a high OPM of 28.4%.  

Non operating expenses include loss in fair value assessment of 4by4, which was reduced by 0.7 billion from stock price decrease. Regarding corporate tax, 10 billion won was reflected. 

Next, we will present artists’ activity outlook and investment highlights. 

JYP Entertainment plans to continue sustainable growth by leveraging its accumulated management capabilities and experiences in a long-term perspective. Such growth will be achieved through the retention of existing artists and the expansion of new artist line-ups. We aim to reinforce our strengths and leadership position in the global music industry through overseas strategic partnerships. Further, we are planning additional near-term growth through artist diversification. Based on these growth drivers, JYP Entertainment is expecting meaningful top line growth in 2025.

DAY6 has resumed their activities after completing army service. They are dominating the Korean streaming charts with both new releases and catalogs. While the group has entered into the 10th year of debut, they are still growing and solidifying their status as an iconic K-pop band. In September, they kicked off their third world tour and will continue on in Asia, Australia, and North America through the first half of 2025. DAY6 is expanding their global fanbase, selling out every concert in North America.

TWICE plans to release a mini-album in the 4Q. Moreover, Japan unit released a mini-album in November with major dome tours in Japan. In 2025, TWICE will continue various activities as a whole group, a unit, and solo in both domestic and overseas. In addition, planned collaborations with global top-tier artists such as Megan Thee Stallion and Coldplay will further expand their global presence.

Stray Kids' mini-album <Ate> which was released in July, became the first K-pop album of the year to surpass 1 million copies sold in the U.S..  As of September, this album was the best-selling K-pop album in the United States for the year, ranking the fourth across all genres. They became the first group in the world to achieve #1 on the Billboard 200 5 times consecutively. They also entered the Billboard Hot 100 three times consecutively, solidifying their position as a leading global top artist. In the upcoming 4Q 2024, they will release their second Japanese regular album and a special album. Stray Kids’ third world tour with the largest concert capacity of their career, will take place in Japan, Asia, and Australia in 2H of 2024, and will continue in North America, South America, and Europe in 2025.

Overall, all the groups who debuted since 2015 have proven incremental growth.

ITZY has resumed activities as a complete group with the return of the member Lia. Their mini-album released in October recorded higher sales than their previous album. The group is preparing for a variety of activities based on new strategies and contents in 2025.

NMIXX successfully held their second fan concert in October and started to expand their overseas fan base by attending Billboard Latin Music Week, the largest event in the Latin music industry, as the first K-pop group. Reaching their 3rd year of debut, NMIXX will maintain various activities for future growth momentum. 

NiziU continued to strengthen their dominant position as a national girl group in Japan and has sold out total of 18 arena concerts in 2024 and 2025.

NEXZ, a Japanese boy group that debuted earlier this year, will release their first global mini-album in November and will continue their activities in Korea and Japan.

On top of our current artist lineup, JYP Entertainment plans to diversify and expand our artist pipeline to maintain sustainable long-term growth momentum. A new boy group will roll-out by the end of this year, and the L2K Project, a girl group composed of Latin American members, is scheduled for 2025. Additionally, we adjusted the debut timeline to 2025 for Project C, a Chinese boy group, considering the fastly evolving market condition in China.

On November 3rd, we launched a new audition program "The Entertainer", which seeks to discover new, multi-talented artists. Through this TV audition program, we plan to uncover and manage artists with high potential under INNIT Entertainment and leverage our capabilities to secure new growth opportunities. We will also continue to strengthen our multi-label system, enhance creativity capabilities, and optimize existing business structure for greater efficiency.