Hybe shares rise on BTS tour-driven earnings outlook

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Hybe rises on BTS tour optimism

Highlights

Hybe’s third-quarter revenue is projected at 1.5 trillion won (up 106%), with operating profit at 172.2 billion won and concert revenue reaching 717 billion won.
BTS’ world tour and newer acts like Enhypen, Katseye, and Cortis are driving concert attendance toward a record 3 million in Q3, with Western markets comprising over 70% of attendees.
Hybe maintains double-digit margins despite higher costs, while rising profitability from newer groups and robust BTS concert demand in Japan and the Middle East could boost 2027 earnings forecasts.

Third-quarter forecasts gain support from global concerts

As reported by CNBC, citing iM Securities, Hybe’s third-quarter revenue is expected to reach 1.5 trillion won, up 106% from a year earlier, while operating profit is projected at 172.2 billion won. Concert revenue is forecast at 717 billion won, nearly triple the level of a year earlier, reflecting the scale of overseas performances by BTS and other acts.

BTS’ ongoing world tour includes 16 stadium shows in North America and eight in Europe during the third quarter. Expanding tours by newer acts including Enhypen, Katseye and Cortis also help push concert attendance to nearly 3 million in the quarter, a level that could mark a company record.

Hybe’s stock gain outperforms the Kospi’s 2.9% rise on Friday, underscoring investor focus on the company’s live entertainment business as a key earnings driver.

International expansion broadens revenue base

Western markets account for more than 70% of total concert attendance for the first time, highlighting Hybe’s widening reach in North America and Europe as newer artistes build their presence. Despite currency headwinds, concert, merchandise and licensing revenue is expected to reach record levels.

Higher royalty payments to established artistes and initial touring costs for newer groups are expected to weigh on margins, but the brokerage says Hybe is likely to maintain a double-digit operating margin, supported by the scale of BTS’ world tour. Analysts add that although concerts and appearances carry higher revenue-sharing costs, merchandise, content and fan club businesses significantly strengthen profitability.

In the second quarter of 2026, Hybe posts an 11.8% operating margin, with artist-direct revenue making up 72% of total sales and concerts alone contributing 45% of sales. iM Securities says the profitability of newer bands such as Katseye and Cortis in Western markets is likely to be key to reducing dependence on BTS, while stronger-than-expected demand for additional BTS concerts in Japan and the Middle East, along with encore shows, could lead to upward revisions to 2027 earnings forecasts.

Our earlier article on third-quarter 2026 cybersecurity funding explained that total investment rose to $6.8 billion mainly because of bigger late-stage rounds, even as the number of deals declined. It also highlighted how AI- and identity-security startups led fundraising and how large acquisitions signaled continued consolidation across the sector.

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