YG PLUS announced on August 11th that its consolidated operating profit skyrocketed by 1324.69% from the previous year to KRW 6.006 billion in the first half of 2021, exceeding its own operating profit for the entire year of 2020 (KRW 6.1 billion). The company’s sales posted KRW 67.764 billion, up by 51.63% from the previous year during the same period, and its net profit amounted to KRW 3.981 billion to mark a turnaround.
In the 2nd quarter, the company’s sales and operating profit recorded KRW 41.167 billion and KRW 4.58 billion respectively on a consolidated basis, up by 61.06% and 206.63% from the previous year, and by 54.78% and 221.07% from the previous quarter as well.
“We have realigned our business operations with a focus on profitability since last year, and this is beginning to generate significant impact from this year”, an official from YG PLUS commented, adding “In the first half of this year, our performance was driven by booming sales from YG’s album/music distribution and MD business, the recognition of Q2 sales from album and music distribution of HYBE and its affiliates, and investment returns generated by YG Investment”.
YG PLUS is confident about its growth outlook for the second half as artists from YG Entertainment and HYBE will be making their comeback starting from Q3, leading to increases in album/music distribution sales. A series of MD launchings is also expected for BLACKPINK, TREASURE, and other entertainers, and the growth of music, MD and other main businesses will become increasingly prominent in the second half of 2021.
Meanwhile, YG PLUS is set to hold an ad-hoc general shareholders’ meeting on September 30th, 2021 to extend its business purpose into storage and warehousing, logistics, and equipment lease. As its main business of album distribution and MD expands in full swing, the company plans to build its own logistics center.
Such decisions are expected to improve the profitability of the company’s album distribution and MD business and further reinforce its internal infrastructure and market competitiveness on the strength of its in-house logistics system. Besides, an independent system spanning from K-pop artists’ content creation to its distribution and logistics will enable the company to establish a self-reliant music ecosystem and speed up its expansion of business into other related businesses in the years ahead.
The official from the company also noted that “We will place a greater focus on strengthening and broadening our competitive edge in key businesses, and leverage our internalized competencies, infrastructure and proactive investments to develop diverse profit models in the areas of music, content, and intellectual property among others”.