ATEEZ and xikers Drive KQ Entertainment’s 150% Sales Surge Over Two Years; Company Aims for IPO Next Year

Founded in 2013, KQ Entertainment is advancing an IPO as it experiences rapid growth within the global K-POP market, with a goal of going public next year. Strong overseas success by key artists such as ATEEZ and xikers has driven significant improvements in the company’s financial performance. The growth trajectory of KQ Entertainment is evident. While its sales reached 46.4 billion won and operating profit amounted to 4.4 billion won in 2022, these figures rose to 65 billion won and 5.9 billion won respectively in 2023. By 2024, sales had climbed to 115.8 billion won and operating profit to 12.5 billion won. Over just two years, sales increased by approximately 150%, while operating profit rose by about 184%. This growth is primarily driven by revenue from concerts. Concert-related income surged by roughly 240% compared to the previous year, and its share of total revenue rose from around 25% to approximately 49%. ATEEZ, the company’s flagship IP, has achieved remarkable results on the global stage. After making its debut on Billboard’s main chart, the Billboard 200, in 2021, the group reached number one on that same chart with their second studio album in 2023. They secured their second Billboard 200 No. 1 with their 11th mini-album released in November of the previous year. In North America, they performed 13 times in 10 cities, attracting 200,000 fans, and became the first K-POP boy group to appear at America’s largest music festival, the Coachella Valley Music and Arts Festival. Their expansion into Europe has also been impressive. From January of this year, they held 14 performances in 9 countries, adding additional shows in cities like London, UK, and Berlin, Germany, due to enthusiastic responses from local fans. Notably, they became the first K-POP artist to hold a solo concert at Paris’s La Défense Arena, which can accommodate around 40,000 people, thereby proving their status as a top-tier global K-POP artist. The rookie group xikers, who debuted in 2023, is also worth highlighting. Within just one year of debut, they managed to place two of their albums within the top 100 of the Billboard 200 chart. They held their first world tour approximately six months after debut, traveling to two cities in Japan and six cities in the United States from October to November 2023. Starting from January of last year, they toured seven countries in Europe and two cities in Australia, becoming the first fifth-generation boy group to successfully complete a tour in Europe as well as in the United States. The company’s future prospects look bright. ATEEZ’s new world tour is set to begin in July of this year, with stadium performances planned in five cities across North America. xikers will also launch a new world tour in May to further expand their global influence. Kim Kyu-wook, CEO of KQ Entertainment, stated, “Through the IPO, we will create new growth drivers by producing not only ATEEZ and xikers but also various other global artists. Since we have selected Mirae Asset Securities as the lead underwriter, we will prepare thoroughly with the goal of achieving a successful listing.”