[Edaily Reporter YUN GI BACK ] JYP Entertainment Corporation(035900)posted third-quarter earnings that exceeded market expectations, driven by the global success of the group Stray Kids. Analysts say the company has reaffirmed its growth potential as its revenue streams have expanded beyond album sales to include concerts and merchandise (MD). Following the surprise earnings report, the stock price surged by more than 20% at one point during the trading session.

On the morning of the 12th, JYP shares traded at 47,000 won, up 21.45% from the previous trading day. This is believed to be driven by the strong third-quarter earnings announced the previous day, which boosted investor sentiment.
JYP reported third-quarter consolidated revenue of 267.5 billion won, a 15% increase from the same period last year. This marks the company’s highest-ever quarterly revenue. Operating profit rose 17.6% to 48 billion won. This represents an “earnings surprise,” exceeding market forecasts of 40.2 billion to 42.1 billion won by 14% to 19%. The operating profit margin also rose by 0.4 percentage points year-over-year to 17.9%.
Stray Kids were the primary driver of this improved performance. As sales of their mini-album “THIS & THAT,” released last August, expanded in Western markets such as North America and Europe, third-quarter album sales reached 79.2 billion won, an 18.2% increase from the same period last year. Digital music sales also rose 48% to 19.8 billion won.
A notable highlight is the growth in merchandise sales. Third-quarter merchandise sales surged 46.7% year-over-year to 58.6 billion won. These results reflect sales from online merchandise for Stray Kids’ fan meetings, on-site sales during tours in Korea and Japan, and pop-up stores in Japan. In South America as well, sales of light sticks and character merchandise expanded following the group’s own festival, “STRAYCITY.”
This demonstrates that K-pop’s revenue structure is expanding beyond albums and concerts to include various fan-based businesses. In particular, analysts note that by combining concert-centered activities with online sales, city-specific pop-up stores, and character merchandise, the revenue potential generated by a single artist’s intellectual property (IP) is growing.
Growth in the South American market was also notable. Stray Kids headlined Brazil’s “Rock in Rio” and attracted a total of 270,000 attendees across three regions through their own festival. Driven by this momentum, third-quarter performance revenue reached a record high of 26.4 billion won, a 138.4% increase from the same period last year.
The securities industry forecasts that the expansion of Stray Kids’ world tour next year will serve as an additional growth driver. A total of 46 concerts are scheduled in Japan, North America, and Europe, with an expected attendance of approximately 2.2 million people.
However, the company’s heavy reliance on Stray Kids’ performance remains a challenge. Observers point out the need to expand the fanbase of next-generation groups to prepare for the hiatus caused by major artists’ military service. JYP Entertainment plans to debut the rookie boy group “oftheblue” in January of next year and strengthen the activities of newer artists such as NMIXX and KickFlip.