Thu. Mar 4th, 2021

BTS megafans who purchased shares in Korea’s Huge Hit Leisure final yr are wanting like grasp traders proper now.


In keeping with new paperwork filed in Korea and reviewed by MBW, Huge Hit generated 796.3 billion KRW (approx $676 million) within the 12 months of 2020. That meant Huge Hit, which floated on the Korea Alternate in October, noticed its annual revenues develop 36% YoY versus 2019.

Huge Hit’s yearly income haul in 2020 was greater than twice the scale of the 301.4bn KRW the corporate generated simply two years earlier, in 2018.

Maybe what’s most exceptional about Huge Hit’s income development final yr was that its reside live shows division – its greatest revenue-generator in 2019 – noticed annual revenues sink by 98% to simply 3.4bn KRW ($2.9m) as a result of impression of Covid-19.

Consequently, live performance income made up simply 0.4% of Huge Hit’s whole international income in 2020.

Nevertheless, non-concert income at Huge Hit doubled in 2020 vs. 2019, up from 396.1bn KRW to 792.9bn KRW.

Huge Hit’s greatest earner in 2020 was recorded music, which contributed 40.3% of revenues.

Huge Hit’s information noticed gross sales almost triple YoY in 2020, producing 320.6bn KRW ($272m) – up by a whopping 196% on the identical determine in 2019.

Elsewhere, Huge Hit noticed stellar development in 2020 in areas comparable to using its artists and their music in Promoting (+133%) and in Merchandise & Licensing (+53%); the latter class made up 32.5% of these $676m whole revenues.

Huge Hit traders will little doubt be completely happy to see a snug revenue margin in 2020, with annual working revenue weighing in at 142.4bn KRW ($121m), representing a 17.9% margin.

Regardless of the collapse of reside live performance revenue, that 2020 working margin was truly larger than Huge Hit’s working margin in 2019, which stood at 16.8%.

Curiously, Korea as a territory grew its significance for Huge Hit in 2020. Some 30% of the corporate’s 2020 revenues have been generated in its house market – versus 25% in 2019 – regardless of worldwide successes comparable to BTS single Dynamite, which made historical past by hitting No.1 on the Billboard Sizzling 100 in August final yr.

All of which provides spice to a key query for the long run: Who’s the world’s greatest music rights/providers firm exterior of the three majors?

Two corporations that may clearly stake a declare at this time: (i) Berlin-headquartered BMG, which generated $308 million in income within the first half of 2020; and (ii) Paris-headquartered Consider, which was reportedly on the right track to generate over $800 million in 2020, and is tipped for a $2bn-plus IPO this yr. (For now, we’ll pass over Kobalt – which simply offered AWAL and KNR to Sony Music – till the mud has settled on that deal.)

More and more, Bit Hit Leisure is pushing its means into this unique clique of world “mini-majors”, alongside the likes of Harmony and Downtown.

In its This autumn presentation to traders, filed at this time (February 23), Huge Hit outlined its go-forward technique throughout two classes: Natural Development and Inorganic Development.

Within the former part, Huge Hit stated its agenda for 2021 is to “preserve the expansion momentum of BTS” and to advertise the expansion of a brand new precedence international act, SEVENTEEN. (Huge Hit acquired a majority stake within the house of SEVENTEEN, Pledis Leisure, throughout 2020.)

Huge Hit additionally stated it’s decided to “broaden into the US” and to “deploy Huge Hit’s successful method” in its new three way partnership label with Common Music Group, as introduced final week.

Final yr noticed two record-breaking live-streamed live shows from BTS: “BANG BANG CON The Reside” and “MAP OF THE SOUL ON:E” in June and October 2020, respectively.

The previous drew in a peak concurrent viewers of 756,000 whereas the latter was considered by a complete viewers of 993,000 worldwide.

You may learn Huge Hit’s full investor This autumn 2020 presentation via right here.

* KRW to USD conversions made at annual common charge in 2020 as per X-rates.comMusic Enterprise Worldwide

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