SEOUL, August 13 (AJP) - JYP Entertainment's second-quarter operating profit fell 41.4 percent from a year earlier as lower concert and merchandise revenue outweighed stronger album and digital music sales.
Operating profit for the April-June period came to 31 billion won ($21.7 million), down from 52.9 billion won a year earlier and 7.1 percent from the first quarter. The result was 18.7 percent below the FnGuide consensus of 38.1 billion won.
The operating margin narrowed to 16.9 percent from 24.5 percent a year earlier, while the gross profit margin fell 3.1 percentage points to 38.7 percent.
Revenue declined 15.1 percent on year to 183.1 billion won, 8.5 percent below the market estimate of 200.1 billion won. JYP attributed the decline largely to a high comparison base from Stray Kids' large-scale concerts and merchandise sales in the same period last year.
Concert revenue fell 35.7 percent to 39.9 billion won as the number of major performances declined, despite tours by TWICE, DAY6, ITZY and NMIXX.
Merchandise revenue dropped 34.5 percent to 43.9 billion won, reflecting the absence of large online merchandise sales and a high base from Stray Kids' tour merchandise a year earlier. Appearance revenue also fell 28 percent to 7 billion won.
Music sales were stronger. Album revenue rose 36.7 percent to 37 billion won as Stray Kids' back-catalog shipments climbed to 420,000 copies from 120,000 a year earlier and JYP released five major new albums, up from three in the same period last year.
Digital music revenue jumped 71.6 percent to 19.7 billion won, helped by stronger overseas demand and a reclassification of YouTube revenue. Advertising revenue increased 20.5 percent to 13.6 billion won.
The weaker revenue mix and higher costs also weighed on profitability. Content production costs increased 25.9 percent from a year earlier, while selling and administrative expenses rose 6.9 percent even as overall revenue declined.
Net income fell 40.3 percent to 21.7 billion won, coming in 27.8 percent below the FnGuide consensus of 30.1 billion won.
JYP said it expects Stray Kids to drive stronger IP monetization in the second half through the group's new mini album "THIS & THAT," its "RUN IT" world tour, festivals and expanded merchandise and licensing businesses.
The company plans to extend the tour into more regions in 2027 while expanding SKZOO pop-up stores and collaborations with global IP partners. It also expects more than 200 concerts across its artist roster in 2026.
SKZOO is Stray Kids' official character brand, featuring animal-inspired characters modeled after the group's eight members and used across merchandise, pop-up stores and licensing collaborations.
JYP Entertainment shares closed at 40,850 won, down 11.2 percent, or 5,150 won, on Thursday.
AJP Takeaway
· JYP Entertainment’s second-quarter operating profit fell 41.4 percent to 31 billion won, missing the FnGuide consensus by 18.7 percent, as weaker concert and merchandise sales outweighed gains in music.
· Revenue declined 15.1 percent to 183.1 billion won, with concert and merchandise revenue down 35.7 percent and 34.5 percent, respectively, against a high base from Stray Kids’ activities a year earlier.
· Album revenue rose 36.7 percent and digital music revenue jumped 71.6 percent, but the stronger music business was not enough to prevent the operating margin from falling to 16.9 percent from 24.5 percent.
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