YG Posts Strong Second-Qtr Results, Raises Target Price as BIGBANG Leads Upcoming Tours

YG Entertainment reported consolidated sales of 127.7 billion won and operating profits of 11 billion won for the second quarter. Compared to the same period last year, sales increased by 27.2% while operating profits rose by 31.2%. This quarter saw increased revenue from album sales, related merchandise, and digital content as new albums by BABYMONSTER and TREASURE contributed to the company’s performance.

The first quarter delivered even stronger results due to the release of BLACKPINK’s mini-album “DEADLINE” and their world tour. In the first week after its release in February, BLACKPINK sold over 1.77 million copies according to the Hanteo Chart. First-quarter sales reached 147.1 billion won, with operating profits at 19.4 billion won. However, net profit decreased by 32.8% to 7.5 billion won.

The second half of the year will feature major tour schedules for key artists. BIGBANG’s world tour “XX : COSMOS” kicks off on the 21st–23rd at the Goyang Sports Complex in Gyeonggi Province, with 33 performances scheduled across 19 cities in North America, Europe, Oceania, and Asia. This is the group’s first world tour in 9 years since “LAST DANCE” in 2017, and during their 10th-anniversary tour alone, they attracted over 1 million fans in South Korea, Japan, and Hong Kong. BABYMONSTER is currently on its second world tour, “CHOOM,” which will begin with a show in Seoul in June and include 27 performances across 18 cities on five continents, including Asia, North America, Oceania, Europe, and South America.

iM Securities raised YG’s target price from 93,000 won to 100,000 won following the official announcement of BIGBANG’s world tour, while maintaining a BUY rating. On the 4th, YG’s stock closed at 62,600 won. YG plans to debut a new boy group approximately six years after TREASURE’s debut in 2020, alongside the autumn release of a new girl group consisting of four members. By shortening album release intervals and sequentially introducing new groups, the company aims to minimize gaps between quarterly activities and reduce reliance on any single artist.