HYBE is working on a secret project in Southeast Asia, but the company isn't ready to reveal what it has planned. CEO Jason Jaesang Lee confirmed the move during an earnings call, after the BTS label posted record sales of KRW 1.53 trillion, or about $1.08 billion.
HSBC analyst Junhyun Kim raised the issue of rival firms finding success with homegrown acts. His concern was that HYBE's way of making and managing artists might be losing some of its edge as more local firms prove they can do it.
Lee sees those new acts as a good sign. He pointed to Indonesia's Noona and the Philippines' SB19, both of which have a presence on Weverse. P-pop group BINI has also joined the fan app.
But there is a catch to HYBE's approach. Lee says a hit act and a firm that can earn long-term income from an artist's brand are quite different things. He views fan communities, music rights, and other income streams as key parts of that business.
Rather than enter a place with no real music scene, HYBE wants signs that local talent can thrive first. Building an artist career and an entire market at once would be a hard task, in Lee's view.
The firm already has bases in the US, Japan, India, Latin America, and China. Its Mumbai office became its fifth global hub, while KATSEYE and &TEAM show how it works with acts based in different parts of the world.
CFO Kyung-Jun Lee also stressed that HYBE holds a broad set of global artist rights. He sees its control of multiple parts of each act's business as a key part of its value.
Elsewhere, SM Entertainment has made moves in the same region. The rival K-pop firm set up plans for a Singapore hub and later explored a paid training school through SM Universe.
BTS also came up during the call. Hana Securities analyst Ki-hoon Lee wanted more detail on what comes after the ARIRANG tour, as well as how much time remains on the group's deals.
HYBE gave no new contract details. The members renewed their deals in 2023, but the firm never made the full terms public.
On future music plans, Lee said talks with the BTS members cover both group work and solo releases. More tour shows are also being planned, with ARIRANG due to carry on into the first half of 2027.
Still, fans hoping for a full schedule will have to make do with that. Lee said the music business rarely sets firm plans more than a year ahead, while tour dates tend to become clear six to nine months out.
He also looked back at the fear that HYBE might struggle without BTS during the members' military service. At one stage, some critics put the firm's reliance on the group at 80% of sales.
That fear had a real effect on the stock. HYBE shares fell by nearly 25% when BTS stepped back for solo work, then rose after the members laid out their military plans.
Weverse had a less upbeat quarter. The app's monthly user count eased from 14.43 million to 14.22 million, while total fan spending fell 19%. Average monthly spend per user also dipped 10%.
The CFO linked that drop to major acts spending more time on live tours. In the prior quarter, those two spending figures had risen by 12% and 24%.
Labor costs drew some questions as well, with HYBE spending about KRW 150 billion per quarter on staff. Its headcount has changed little, though higher bonus reserves for strong results pushed the bill up.
According to the CFO, those extra staff costs are tied to how well the business does. Weaker results would mean less need to set aside money for those payments.
HSBC analyst Junhyun Kim raised the issue of rival firms finding success with homegrown acts. His concern was that HYBE's way of making and managing artists might be losing some of its edge as more local firms prove they can do it.
Lee sees those new acts as a good sign. He pointed to Indonesia's Noona and the Philippines' SB19, both of which have a presence on Weverse. P-pop group BINI has also joined the fan app.
But there is a catch to HYBE's approach. Lee says a hit act and a firm that can earn long-term income from an artist's brand are quite different things. He views fan communities, music rights, and other income streams as key parts of that business.
Rather than enter a place with no real music scene, HYBE wants signs that local talent can thrive first. Building an artist career and an entire market at once would be a hard task, in Lee's view.
The firm already has bases in the US, Japan, India, Latin America, and China. Its Mumbai office became its fifth global hub, while KATSEYE and &TEAM show how it works with acts based in different parts of the world.
CFO Kyung-Jun Lee also stressed that HYBE holds a broad set of global artist rights. He sees its control of multiple parts of each act's business as a key part of its value.
Elsewhere, SM Entertainment has made moves in the same region. The rival K-pop firm set up plans for a Singapore hub and later explored a paid training school through SM Universe.
BTS also came up during the call. Hana Securities analyst Ki-hoon Lee wanted more detail on what comes after the ARIRANG tour, as well as how much time remains on the group's deals.
HYBE gave no new contract details. The members renewed their deals in 2023, but the firm never made the full terms public.
On future music plans, Lee said talks with the BTS members cover both group work and solo releases. More tour shows are also being planned, with ARIRANG due to carry on into the first half of 2027.
Still, fans hoping for a full schedule will have to make do with that. Lee said the music business rarely sets firm plans more than a year ahead, while tour dates tend to become clear six to nine months out.
He also looked back at the fear that HYBE might struggle without BTS during the members' military service. At one stage, some critics put the firm's reliance on the group at 80% of sales.
That fear had a real effect on the stock. HYBE shares fell by nearly 25% when BTS stepped back for solo work, then rose after the members laid out their military plans.
Weverse had a less upbeat quarter. The app's monthly user count eased from 14.43 million to 14.22 million, while total fan spending fell 19%. Average monthly spend per user also dipped 10%.
The CFO linked that drop to major acts spending more time on live tours. In the prior quarter, those two spending figures had risen by 12% and 24%.
Labor costs drew some questions as well, with HYBE spending about KRW 150 billion per quarter on staff. Its headcount has changed little, though higher bonus reserves for strong results pushed the bill up.
According to the CFO, those extra staff costs are tied to how well the business does. Weaker results would mean less need to set aside money for those payments.
