Hybe shares jump 10% as BTS tour boosts earnings outlook

Shares of Hybe, the company behind K-pop supergroup BTS, surged 10% on Friday, driven by an upbeat third-quarter earnings outlook fueled by its artists' global concerts. Hybe's third-quarter revenue is expected to reach 1.5 trillion won ($1.11 billion), up 106% from a year earlier, with concert revenue nearly tripling to 717 billion won. BTS' world tour featured 16 stadium shows in North America and eight in Europe, helping drive concert attendance to nearly 3 million. Western markets accounted for over 70% of total concert attendance for the first time. While higher royalty payments and initial touring costs for newer groups may weigh on margins, Hybe is forecast to maintain a double-digit operating margin. The profitability of newer acts like Katseye and Cortis is seen as key to reducing reliance on BTS.