On February 23, Big Hit Entertainment shared their 2020 profits, recording their biggest annual business performance since the agency was founded.
The big hit in 2020 was annual sales revenue of 796.3 billion won (approximately $ 716.4 million), operating profit of 142.4 billion won (approximately $ 128.1 million) and net profit of 86.2 billion. won (approximately $ 77.6 million). These preliminary settlement figures are calculated by the agency, following the accounting standards of K-IFRS, without an audit by an external auditor.
Compared to 2019, the agency’s sales revenue increased by 36 percent, with operating profit and net income of 44 and 19 percent, respectively. Despite the COVID-19 pandemic, they mark the highest performance to date in Big Hit Entertainment.
In the fourth quarter of 2020 alone, Big Hit accumulated revenue of 312.3 billion won (approximately $ 281 million), as well as operating profit of 52.5 billion won (approximately $ 47.2 million). Compared to the fourth quarter of 2019, these figures record a growth of 117 and 122 percent, respectively. Looking at their quarterly impact, this fourth quarter also records the biggest Big Hit numbers since its inception.
The biggest factors influencing this revenue increase were excellent album sales and business growth. Big Hit Label artists, including BTS, SEVENTEEN, TXT, ENHYPEN and others, have sold 13.2 million copies of the album (according to the Gaon charts). As a result, album sales revenue was 320.6 billion win (approximately $ 288.5 million), an increase of 196 percent over 2019.
Following the acquisition of Pledis Entertainment in May 2020 and KOZ Entertainment in November 2020, Big Hit now has a multi-label structure with five different labels, including BELIFT LAB and Source Music.
Business growth also had a significant impact on revenue growth. Although the agency recorded a drop in concert sales due to COVID-19, Big Hit focused on official merchandise and licensing, content and fan clubs. This led to an increase of 53, 71 and 66 percent, respectively, compared to 2019.
The global platform of the Big Hits Weverse fan community also recorded continuous growth throughout the year. As of February 2021, the total number of app downloads has exceeded 25 million.
Along with their performance report, Big Hit Entertainment commented, “Even in the midst of COVID-19, we were able to record our highest performance ever thanks to a solid business structure. Through the continued growth of our Big Hit Label artists, along with our inorganic growth through acquisitions and mergers, we have a strategy to further expand our business scope.
They continued, “Including our integration with the Naver V Live business division through the recently announced WEVERSE COMPANY and our partnership with Universal Music Group, we plan to continue working with external partners in a variety of ways to continue our growth.”
How do you feel in this article?