BTS megafans who purchased shares in Korea’s Big Hit Entertainment final 12 months are wanting like grasp traders proper now.
According to new paperwork filed in Korea and reviewed by MBW, Big Hit generated 796.3 billion KRW (approx $676 million) in the 12 months of 2020. That meant Big Hit, which floated on the Korea Exchange in October, noticed its annual revenues develop 36% YoY versus 2019.
Big Hit’s yearly income haul in 2020 was greater than twice the dimension of the 301.4bn KRW the firm generated simply two years earlier, in 2018.
Perhaps what’s most exceptional about Big Hit’s income development final 12 months was that its dwell concert events division – its greatest income-generator in 2019 – noticed annual revenues sink by 98% to simply 3.4bn KRW ($2.9m) due to the affect of Covid-19.
As a end result, live performance income made up simply 0.4% of Big Hit’s complete international income in 2020.
However, non-live performance income at Big Hit doubled in 2020 vs. 2019, up from 396.1bn KRW to 792.9bn KRW.
Big Hit’s greatest earner in 2020 was recorded music, which contributed 40.3% of revenues.
Big Hit’s data noticed gross sales practically triple YoY in 2020, producing 320.6bn KRW ($272m) – up by a whopping 196% on the identical determine in 2019.
Elsewhere, Big Hit noticed stellar development in 2020 in areas resembling the use of its artists and their music in Advertising (+133%) and in Merchandise & Licensing (+53%); the latter class made up 32.5% of these $676m complete revenues.
Big Hit traders will little question 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.
Despite the collapse of dwell live performance earnings, that 2020 working margin was really greater than Big Hit’s working margin in 2019, which stood at 16.8%.
Interestingly, Korea as a territory grew its significance for Big Hit in 2020. Some 30% of the firm’s 2020 revenues have been generated in its residence market – versus 25% in 2019 – despite worldwide successes resembling BTS single Dynamite, which made historical past by hitting No.1 on the Billboard Hot 100 in August final 12 months.
All of which provides spice to a key query for the future: Who’s the world’s greatest music rights/providers firm outdoors of the three majors?
Two firms that may clearly stake a declare in the present day: (i) Berlin-headquartered BMG, which generated $308 million in income in the first half of 2020; and (ii) Paris-headquartered Believe, which was reportedly on the right track to generate over $800 million in 2020, and is tipped for a $2bn-plus IPO this 12 months. (For now, we’ll miss Kobalt – which simply bought AWAL and KNR to Sony Music – till the mud has settled on that deal.)
Increasingly, Bit Hit Entertainment is pushing its approach into this unique clique of worldwide “mini-majors”, alongside the likes of Concord and Downtown.
In its This fall presentation to traders, filed in the present day (February 23), Big Hit outlined its go-ahead technique throughout two classes: Organic Growth and Inorganic Growth.
In the former part, Big Hit stated its agenda for 2021 is to “maintain the growth momentum of BTS” and to promote the development of a brand new precedence international act, SEVENTEEN. (Big Hit acquired a majority stake in the residence of SEVENTEEN, Pledis Entertainment, throughout 2020.)
Big Hit additionally stated it’s decided to “expand into the US” and to “deploy Big Hit’s winning formula” in its new three way partnership label with Universal Music Group, as introduced final week.
Last 12 months noticed two file-breaking dwell-streamed concert events from BTS: “BANG BANG CON The Live” and “MAP OF THE SOUL ON:E” in June and October 2020, respectively.
The former drew in a peak concurrent viewers of 756,000 whereas the latter was considered by a complete viewers of 993,000 worldwide.
You can learn Big Hit’s full investor This fall 2020 presentation by way of right here.
* KRW to USD conversions made at annual common charge in 2020 as per X-charges.comMusic Business Worldwide