BTS agency posts record earnings in 2020 on brisk online activities and album sales

SEOUL -- The agency of K-pop wonder BTS achieved its best-ever corporate earnings in 2020, despite a COVID-19 pandemic that prompted artists to cancel offline concerts and focus on online activities with fans. Big Hit Entertainment attributed its stellar performance to a solid business structure based on a multi-label system and brisk album sales.

Big Hit said in a regulatory filing on February 23 that its consolidated net profit in 2020 rose 19 percent on-year to 86.2 billion won ($77.6 million). Sales jumped 35.6 percent to a record high of 796.3 billion won while operating profit was up 44.2 percent to 142.4 billion won. The proportion of online sales increased from 12 percent in 2019 to 27 percent in 2020.

In the fourth quarter of last year, net profit increased 37 percent on-year to 25.8 billion won. Operating profit was up 122.3 percent from a year ago to 52.5 billion won and sales rose 117 percent to 312.3 billion won.

In 2020, BTS changed the paradigm of concert events by holding two live online concerts organized by beNX, an entertainment platform company known for its fan community service Weverse that allows fans to interact with artists and makes profits through subscription models and paid streaming.

Sales of performances such as offline concerts plunged from 191.1 billion won in 2019 to 3.4 billion won in 2020, but album sales rose 196 percent to 320.6 billion won. Sales of merchandise and licensing increased 53 percent on-year to 259.1 billion won in 2020. Content sales rose 71 percent to 133.5 billion won, and fan club-related sales increased 66 percent to 32.9 billion won.