1. YG Entertainment Q2 Earnings: Key Highlights

On August 8, 2025, YG Entertainment announced its Q2 earnings. Here’s a summary of the key figures:

  • Revenue: KRW 100.4 billion (Expected: KRW 107.6 billion, -7.0%)
  • Operating Profit: KRW 8.4 billion (Expected: KRW 3.3 billion, +155.0%)
  • Net Profit: KRW 8.0 billion (Expected: KRW 5.5 billion+, +45.5%)

2. Behind the Surprise Profit: What Drove Operating Income?

The main factors contributing to the significant beat on operating profit are the robust growth of its core ‘Merchandise & Products’ segment and efficient cost management. YG Entertainment is expanding its IP business based on the strong global fandom of its artists, which leads to stable profit generation.

3. Reasons for Revenue Decline and Future Outlook

The revenue shortfall is attributed to slower growth in some business segments. However, YG expects future revenue growth driven by the continued popularity of its global artists and the development of new talent. Nevertheless, external factors such as the global economic slowdown and intensifying competition require continuous monitoring.

4. Action Plan for Investors: Should You Invest in YG Entertainment Now?

The current investment recommendation is ‘Neutral’. While improved profitability and strong IP power are attractive investment points, potential revenue growth slowdown and macroeconomic uncertainties should be considered. Before making an investment decision, carefully review the following factors:

  • Future artist lineup expansion strategy
  • Success of new artists
  • Global economic and exchange rate volatility