July 2026: Hybe Shares Dive 16.31% on Record BTS Tour Revenue, Margin Squeeze
South Korea's top K-pop agency Hybe saw its stock fall 16.31% over two days, the biggest drop since June 2022, despite record second-quarter revenue from BTS's 'Arirang' tour. The market cap lost about 2.845 trillion won ($1.96 billion) in less than 24 hours. High artist payment ratios ate into margins, with concert revenue soaring 243.3% year-on-year. Separately, a December 2024 court ruling confirmed NewJeans' contract with Hybe subsidiary ADOR remains valid until 2029.
Although the concert tour of BTS was a huge success, boosting the second-quarter performance of Hybe, South Korea's largest K-pop agency, the company's market capitalization evaporated by about 2.845 trillion won ($1.96 billion) in less than 24 hours. Hybe shares plunged 16.09% on Tuesday, the biggest single-day drop since June 2022, and continued to fall on Wednesday, with the decline reaching 16.31% at one point, hitting the lowest level since September 2024.
Concert revenue was the main driver of the record results, but the proportion of revenue paid to artists was higher than what the company retained, resulting in lower profit margins. Second-quarter concert revenue rose 243.3% year-on-year and surged 630% quarter-on-quarter, mainly thanks to BTS's 'Arirang' tour, which started in South Korea on April 9.
In addition, a South Korean court ruled in December 2024 that the contract between Hybe subsidiary ADOR and the girl group NewJeans remains valid, requiring NewJeans to fulfill the contract until 2029. NewJeans has been in a protracted contract dispute with Hybe since 2024, having previously been one of Hybe's most successful new acts.