HYBE releases the 2020 financial report for sublabels Pledis Entertainment and Source Music (Update: Knetz comments)

[satoori]

Every year Big Hit Labels, now known as HYBE, has been releasing its financial report of all the sub-labels and affiliated companies.

The company has been growing every year, especially after acquiring Pledis Entertainment, home to groups such as Seventeen and NU'EST, and Source Music, home to GFriend, in 2020. 

During the same year, Big Hit Entertainment went public and issued shares for 135,000 KRW (~$115 USD), raising the company's value to 5.8 trillion KRW (~4.1 billion USD). They continue to grow as one of the largest entertainment corporations as they venture into content production powerhouse and partner with Naver to create the largest fan community platform.

Recently, HYBE has released the financial report for the year 2020, revealing the financials of the sub-labels as well.

According to the reports, Pledis Entertainment made sales of 69 billion KRW (61.25 million USD) with a net profit of 11 billion KRW (9.76 million USD) in 2020, while Source Music made sales of 8 billion KRW (7.1 million USD) with a net loss of 2.3 billion KRW (2 million USD) in 2020.

Currently, Pledis Entertainment has a debt of 29 billion KRW (25.7 million USD). On the other hand, Source Music has a debt of 12.9 billion KRW (11.45 million USD). Source Music also received a loan of 7.5 billion KRW (6.65 million USD) from Big Hit. CR.

[satoori]

Although Bighit (bts,txt) had a great year [financially] in 2020...most companies were hit hard by Covid we can see some of this here(?)

I'm assuming both Pledis and Source were planning major tours/events before covid hit. The rest of their debt/loss, I don't know. They spending it somewhere. New groups, comebacks, etc.

Years ago Pledis was heavy in debt. Seems things might be getting better at least.

Source is lowkey struggling tho.

It's still early in the year so we shall see how things go for them.

 

Edited March 22, 2021 by satoori

[satoori]

we've already knew this, but bts is doing a lot of heavy lifting for hybe. 

[lighterxx]

Pledis debt is probably from the cancelled dome tour, I heard ugh those are goddamn expensive to cancel, if I'm not mistaken there were like 7 dates (I might be remembering wrong tho). They seem to earn perfectly well tho, at least I won't worry about svt earning less 

Edit: is Pledis Japan not under HYBE? how funny lol 

Edited March 23, 2021 by lighterxx
Mixed the tour

[penyair]

oh net loss.... soumu only has gfriend right?

[satoori]

55 minutes ago, lighterxx said:

Pledis debt is probably from the cancelled stadium tour, I heard ugh those are goddamn expensive to cancel, if I'm not mistaken there were like 7 dates (I might be remembering wrong tho). They seem to earn perfectly well tho, at least I won't worry about svt earning less 

 

Edit: is Pledis Japan not under HYBE? how funny lol 

wouldn't a subsidiary simply be under pledis(?) ..tho with the new branding there's hybe japan labels now, so i wonder if pledis japan still exist

[lighterxx]

39 minutes ago, satoori said:

wouldn't a subsidiary simply be under pledis(?) ..tho with the new branding there's hybe japan labels now, so i wonder if pledis japan still exist

It should be as they are still active, same as xcss tbh o.o if they are not under hybe thats... Tbh very funny lmao

[satoori]

17 minutes ago, lighterxx said:

It should be as they are still active, same as xcss tbh o.o if they are not under hybe thats... Tbh very funny lmao

Now I remember...according to the brand briefing recently "the artists who belong to each of the companies have their own  distinct colors [...] each label will maintain their independence and originality." and "their creative activities will be supported by HYBE management system."

So I guess it would makes sense Pledis divisions (e.g. XCSS and Pledis Japan) still remain under Pledis.

[lighterxx]

2 minutes ago, satoori said:

Now I remember...according to the brand briefing recently "the artists who belong to each of the companies have their own  distinct colors [...] each label will maintain their independence and originality." and "their creative activities will be supported by HYBE management system."

So I guess it would makes sense Pledis divisions (e.g. XCSS and Pledis Japan) still remain under Pledis.

Thats a bit weird then, like here i am buying majority share of your company but im gonna leave your conveniently foreign companies under you tho so feel comfortable to do suspicious things with your money

If i was the ceo i would never do this lol, but oh well i guess hybe trusts pledis' ceo alot, or maybe these divisions are very connected to pledis so they assume they can control 

[RIPHaldir]

Not suprising Source is negative since Gfriend havnt been able to turn their digital decline around despite 3 cbs last year, I dont believe they will get as many this year and the ngg will be key to seeing how Source does moving forward

Edited March 24, 2021 by RIPHaldir

[satoori]

7 minutes ago, lighterxx said:

Thats a bit weird then, like here i am buying majority share of your company but im gonna leave your conveniently foreign companies under you tho so feel comfortable to do suspicious things with your money

If i was the ceo i would never do this lol, but oh well i guess hybe trusts pledis' ceo alot, or maybe these divisions are very connected to pledis so they assume they can control 

except it's common for a large parent company to have independently running companies/subsidiaries under them. so i don't see how it's weird. 

besides it's not like the parent company is not watching. at the end of the day, they're still the ones on top. they're still supporting everyone.

[satoori]

11 minutes ago, RIPHaldir said:

Not suprising Source is negative since Gfriend havnt been able to turn their digital decline around sespite 3 cbs last year, I dont believe they will get as many this year and the ngg will be key to seeing how Source does moving forward

tbh digitals sort of don't matter here. that's not where the money is at. 

however gfriend was starting to gain momentum in japan and probably start touring even more in general - which would have actually made them money.

[satoori]

OT: if only pledis was acquired earlier...maybe pristen would have had a chance ><

[satoori]

original post: theqoo

1. Big Hit, please lend me 7 million won ㅜㅜ

2. If Big Hit wants to debut a girl group, why don’t they create a new label? Why did they take over Source Music?

3. Pledis did well. They made a lot of money even during the coronavirus period

4. The reason Big Hit acquired Source Music is due to the relationship + plans for the next girl group? Min Heejin’s girl group should be good enough to make up for that loss

5. Min Heejin’s girl group will somehow be a big hit, if that doesn’t happen then Source Music will be completely in deficit, and I want GFriend to continue promoting with their own colors…

6. Source Music deficit was due to Big Hit acquiring Source Music and they changed GFriend’s music color and concept..

7. If it’s a Min Heejin girl group, isn’t it worth debuting under Big Hit? Why did Big Hit acquire Source Music and debut a new girl group under Source Music? If it was a Big Hit girl group, I think I would care and support them more

8. Well, there’s a lot of Bang Shi Hyuk here

9. Seventeen is doing well

10. I like GFriend’s old songs even though I’m not a fan, but I don’t really listen to their new songs these days. CR.

[spopo]

Gfriend was planning a tour last year that obviously didn't happen.  Also, SouMu is about to debut a new girl group, and is probably investing heavily in that atm.  Probably the reason for the loss.  After the group debuts Source will see returns.

[spopo]

1 hour ago, RIPHaldir said:

Not suprising Source is negative since Gfriend havnt been able to turn their digital decline around sespite 3 cbs last year, I dont believe they will get as many this year and the ngg will be key to seeing how Source does moving forward

Digitals don't count for shit.  Groups don't make money off of digital sales (which is why boy groups are profitable, despite not doing well digitally in general).  Touring is where the money is at.

[lighterxx]

1 hour ago, satoori said:

except it's common for a large parent company to have independently running companies/subsidiaries under them. so i don't see how it's weird. 

besides it's not like the parent company is not watching. at the end of the day, they're still the ones on top. they're still supporting everyone.

Depends even in such situation I expect an agreement about them, not even mentioning them is odd tbh but maybe I'm too controlling 

1 hour ago, satoori said:

OT: if only pledis was acquired earlier...maybe pristen would have had a chance ><

Doubtful, unfortunately their issue stemmed from inter group problems not company itself rip (at least not majorly) 

[satoori]

4 hours ago, lighterxx said:

Depends even in such situation I expect an agreement about them, not even mentioning them is odd tbh but maybe I'm too controlling 

Doubtful, unfortunately their issue stemmed from inter group problems not company itself rip (at least not majorly) 

It probably isn't necessary to specifically mention different divisions within Pledis right now. Saying Pledis alone includes everything under them.

 

The majority of the group probably could have been saved. Also some negotiations could of been made with the problematic members with a more stable company. The entire situation with Pristin is very odd in general. It's not like Pristin is the first group to have some internal problems. However the company and the group still push through when their successful like Pristen.

[BAZISSINO]

i think the struggle will still be there as offline concerts doesn't make as much money as the regular tours ( and we all know we still haven't seen light on that area yet ) i think all the groups are suffering if we exclue the 1% who sells millions 

[RIPHaldir]

 

On 3/22/2021 at 8:53 PM, satoori said:

tbh digitals sort of don't matter here. that's not where the money is at. 

however gfriend was starting to gain momentum in japan and probably start touring even more in general - which would have actually made them money.

True but for a gg they are essential and seeing how Gfriend cant hit 100k or have any standout international numbers its unlikely their touring will grow from '19 and their current pull isnt big enough 

 

On 3/22/2021 at 10:00 PM, spopo said:

Digitals don't count for shit.  Groups don't make money off of digital sales (which is why boy groups are profitable, despite not doing well digitally in general).  Touring is where the money is at.

Except Gfriend cant even tour that well so they arent making enough mpney off that/merchandise either

[satoori]

11 minutes ago, RIPHaldir said:

 

True but for a gg they are essential and seeing how Gfriend cant hit 100k or have any standout international numbers its unlikely their touring will grow from '19 and their current pull isnt big enough 

That's not necessarily true. There are some girl groups from the past that didn't hit 100K and still did very well tourwise (at least in Japan and some asian countries) Japan alone can make a group profitable and set for life.

[spopo]

13 hours ago, RIPHaldir said:

Except Gfriend cant even tour that well so they arent making enough mpney off that/merchandise either

...nobody can tour right now.  We're in a pandemic.

Their last couple of tours have been successful.