[Edaily Reporter Park Sun-Yeop ] YG Entertainment Inc.(122870)is expected to see earnings growth in the second half of the year, driven by BIGBANG’s first world tour in about 10 years and the expanded activities of BABYMONSTER and TREASURE. While second-quarter earnings are projected to slow compared to the previous quarter due to BLACKPINK’s hiatus, concert and merchandise (MD) sales from major artists are expected to be reflected in full starting in the third quarter.
Kim Min-young, an analyst at Meritz Securities, stated in a report on the 21st, “Momentum is expected to strengthen in the second half of the year as Baby Monster and TREASURE expand their tours and BIGBANG’s world tour begins to be fully reflected in earnings.”

Meritz Securities estimated YG Entertainment Inc.’s consolidated revenue for the second quarter of this year at 114.6 billion won, a 14.2% increase year-over-year, and operating profit at 9.9 billion won, up 18.2%. The operating profit is in line with the lowered market forecast of 9.6 billion won.
However, compared to the previous quarter, revenue and operating profit are expected to decline by 22.1% and 49.9%, respectively. This is due to the absence of BLACKPINK’s album sales and large-scale merchandise sales—which drove first-quarter performance—as well as a reduction in the number of concerts by major artists.
In the music division, revenue is expected to reach 29.2 billion won—a 1,215.1% increase year-over-year—driven by album sales of 810,000 copies for BABYMONSTER and 1.06 million copies for TREASURE. In contrast, concert revenue is projected to total 9.7 billion won—a 68.1% decrease from the previous quarter—due to the absence of BLACKPINK’s tour and a reduction in the number of performances by BABYMONSTER and TREASURE. The operating profit margin is also expected to decline from 13.4% in the first quarter to 8.6% as the share of revenue from concerts and merchandise shrinks.
The focus of earnings is expected to shift to the third quarter and beyond. This is because revenue from major events—such as Baby Monster’s world tour, pop-up stores tied to their Japan tour, and merchandise for Big Bang’s 20th debut anniversary—will be concentrated primarily in the second half of the year.
In particular, BIGBANG is expected to drive growth in the second half through its first world tour in about 10 years. The currently announced scale of the second-half tour—27 shows with an estimated attendance of approximately 1.3 million people—places it among the top-tier domestic groups. Analysts note that with the potential release of new singles or albums, revenue from merchandise and licensing could increase alongside concert revenue.
BABYMONSTER is set to continue its world tour alongside the release of a new album in the second half of the year, and TREASURE also plans to continue its album and tour activities. A debut by a new boy group—the first since TREASURE—is also planned for the end of the year. Analyst Kim assessed that the initial performance of this new group will be a key factor determining medium- to long-term earnings growth and a revaluation of the company’s market value.
Meritz Securities raised its operating profit forecast for YG Entertainment Inc. this year by 16.1% from its previous estimate to 87.3 billion won. This figure exceeds market expectations by 12.1%.
However, reflecting the decline in valuations across the entertainment sector as a whole, the fair value per share was lowered from 80,000 won to 65,000 won. The investment rating was maintained at “Buy.”
Analyst Kim stated, “Earnings stability is expected to improve in the second half of the year due to activities related to major intellectual property (IP),” adding, “The expansion of the fanbase through BABYMONSTER’s second world tour and the initial performance of the new boy group will be key factors in a revaluation of the company.”