Hybe (352820) Shares Drop 16.09% After BTS Concert Earnings Miss

Hybe's (352820) market cap decreased by 2.845 trillion won ($1.96 billion) after shares fell 16.09% on July 18, marking the lowest point since June 2022. This decline continued with a further drop of 16.31% on July 19. Analysts indicated that despite record revenue and operating profit, Hybe's operating margin at 11.8% fell short of expectations of 12.7% and 12.2%. The cause was attributed to increased artist-settlement costs from concert revenues, which surged 243.3% year-on-year, leading to lower profitability margins. Investors should note that while concert revenues are high, they result in lower margins, affecting overall profitability.