The 2013 first quarter earnings report are in for the ‘Big 3′ entertainment companies.
YG Entertainment saw the biggest jump in gross profit. YG Entertainment’s business profit was 6,292,000,000 KRW (approximately $5.6 million USD), which is more than a 44.3% increase over the same period last year. Their total sales came in at 29,086,400,000 KRW (approximately $25.8 million USD), and their net profit added up to 4,164,000,000 KRW (approximately $3.7 million USD).
YG Entertainment explained, “As our artists’ overseas activities become more and more active, their royalties and sales increased. Big Bang and 2NE1‘s world tours’ profits were included for the first quarter.”
SM Entertainment, however, saw a huge loss of 80.0% in net profit compared to the same period last year, seeing only 2,003,000,000 KRW (approximately $1.8 million USD). Their gross profit fell 72.1% to 5,076,000,000 KRW (approximately $4.5 million USD) while their sales rose a small percentage of 0.7% to 49,986,000,000 KRW (approximately $44.3 million USD).
But SM Entertainment wasn’t fazed. The revenue from all of their concerts in the first quarter will be factored into the earning reports of the second and following quarters, meaning that their net profit reflected the losses invested into the concerts, but didn’t include the profits from said concerts. Also, SM C&C invested into a company to create video concerts in the first quarter of the year. SM said, “There are various big concerts that will be factored in the 2nd quarter, such as Girls’ Generation’s Japanese tour, TVXQ’s Japanese Dome tour, and SM Town Live. EXO is also going to start promoting actively in Korea and China. The artists’ various promotions will spring on a new momentum.”
As for JYP Entertainment, they managed to stop the bleeding, so to speak and decrease their business losses. JYP recorded a loss of 936,000,000 KRW (approximately $830,000 USD). Compared to the losses for the same period of 2012, they managed to decrease the loss by 63.3%. Their sales increased 57.1% to 2,807,000,000 KRW (approximately $2.5 million USD), and their net losses decreased to over half of last year at 1,069,000,000 KRW (approximately $947,000 USD).
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Just imagine once 2NE1 has their comeback and new concerts, not to mention other YG artists comeback in 2nd half of 2013, it will be another banner year for YG Entertainment.
Source: Star News via allkpop
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