Concerns Emerge Over BTS Contract Status with HYBE Amid Financial Decline

On November 5, 2024, a wave of speculation erupted online regarding BTS’s future with HYBE after the release of the company’s “Q3 2024 Earnings Report.”The report was accompanied by a conference call transcript featuring a statement from HYBE’s CFO, Lee Kyung-joon, which drew considerable attention on the Korean forum, TheQoo. He expressed uncertainty about the band’s comeback slated for 2026, stating that discussions with BTS members are ongoing, especially as five of them are currently attending to military service.

“We are still discussing with the members about activities for 2026, so no projections have been made right now,”said Lee Kyung-joon.

Despite these uncertainties, Lee emphasized that HYBE does not intend for its revenue to rely solely on BTS. The company is diversifying its artist roster. However, the financial impact of BTS’s absence was starkly reflected in HYBE’s results, with a staggering 98.6% decrease in net profit during Q3 2024 and a 25.3% dip in operating profit.

“Of course, if they come back as a full group, there will be significant sales, but we expect that the proportion of sales will not increase as much as in the past due to the growth of new businesses by our other artists,”he added.

ARMY Reactions: Distress and Speculations about BTS’s Future

The announcement stirred confusion within the BTS fanbase, known as ARMY, as many recalled a previous announcement from 2023 regarding the renewal of contracts with each band member prior to their military enlistments. Fans took to social media to express their disappointment and suspicion that the earlier renewal news might have been a strategic move by HYBE to maintain fan engagement.

“So the renewal announcement was just media play,”remarked one ARMY on X.

Fans have also voiced concerns about HYBE’s ongoing narrative, suggesting that the company is attempting to position itself as independent from BTS’s financial success. Notably, in September 2023, HYBE announced that contracts had been signed and hinted at the group resuming activities in 2025, leading to further frustration among supporters.

“They’ve been trying to portray that they aren’t dependent on BTS anymore for years now,”commented another fan.

Financial Impact of BTS’s Hiatus: A Deep Dive into HYBE’s Q3 Results

Recent financial reports reveal the stark consequences of BTS’s military service on HYBE’s finances. The company’s latest quarterly earnings indicated a loss of over 98.6% in net profit, generating only $1 million in revenue in comparison to the previous year. Furthermore, operating profit fell by 25.4% to approximately 54.2 billion KRW (around $39.3 million).

Since 2023, as five members serve in the military, HYBE has experienced a significant decline in both revenue and stock shares. However, a slight recovery was noted following the return of the eldest member, Jin, in June 2024, which led to a 2.79% increase in overall share value as fans anticipated his debut solo album, set to release on November 15.

Meanwhile, Jung Ho-seok, also known as J-Hope, completed his military service on October 17, 2024; HYBE saw a 7% increase in stock value in response to this development, although the member has yet to re-enter music activities.

Looking Ahead: What’s Next for BTS and HYBE?

Despite HYBE’s financial struggles, the company continues to maintain a long-term outlook for BTS, planning for their return in June 2025 when most of the members finish their military service. However, the uncertainty surrounding contract renewals raises questions about the group’s future trajectory and financial stability in a rapidly evolving K-pop industry.

Amid this backdrop, the company’s reputation has also come under scrutiny. Controversies surrounding the “Industry Trends Report,”presented during the National Assembly Audit on October 24, 2024, have compounded challenges for HYBE’s image.

As fans hope for a resolution and clearer direction regarding BTS’s future with HYBE, it remains crucial for both the company and its iconic group to navigate these turbulent waters wisely.

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