KOSPIMedia & Entertainment037270

YG Plus

₩3,095 0.00%2026-10-02 close

Market Cap

₩197.4B

Turnover

₩200M

Volume

80,000 shares

Shares out.

63.7M

PER

10.0×

PBR

1.0×

EPS

₩318

Dividend Yield

0.95%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩30 per share · Prices as of the 2026-10-02 close

Report overview

After the Blackpink Effect, Earnings Durability Is the Key Question

YG PLUS swung from a loss to a profit in 2025 on Blackpink world tour merchandise and expanded multi-label music distribution, but quarterly results remain highly uneven depending on artist comeback and tour schedules.

1
2025 consolidated revenue reached KRW 236.0bn (+27.7% YoY) with operating profit of KRW 32.3bn, swinging from an operating loss in 2024
2
3Q2025 revenue of KRW 69.9bn and operating profit of KRW 14.1bn marked the peak of the last four quarters, before slowing again in 4Q2025 and 2Q2026
3
HYBE sold its entire direct 7.67% stake via block trade in September 2025, but retained a 10.23% stake through subsidiary Weverse Company and renewed its domestic distribution deal
4
A distribution network spanning over 600 domestic and global labels, operation of Naver's VIBE platform, and the merchandise/IP business form the core revenue pillars
5
For 2026, YG group artist schedules including BabyMonster's world tour and new group debuts remain key variables for earnings

Business structure

YG PLUS was founded in 1996 as Phoenix Holdings and was acquired by YG Entertainment in 2014, after which it was rebranded into its current form as an entertainment infrastructure and IP business specialist.

Its core segment is music solutions, running album and digital-music investment and distribution for more than 600 domestic and global partner labels including YG Entertainment, HYBE, THEBLACKLABEL, and VLAST.

This segment also includes operating Naver's music platform "VIBE" on an outsourced basis and the "mixtape." global digital distribution service for independent artists.

The second pillar is the merchandise/IP business, which handles in-house planning, design, and manufacturing of artist merchandise in partnership with global players such as Bravado in the United States.

Advertising, the company's original line of business under Phoenix Holdings, now contributes only a marginal share of revenue. According to a recent revenue breakdown, music services accounted for roughly 47% of sales, merchandise/products about 39%, services around 14%, and advertising under 1%.

Music service accounts for the largest portion at 47.31%, followed by merchandise at 38.56%, services at 14.12%, and advertising at 0.01%.

Subsidiary YG Investment handles venture investment and fund management, and the company's subsidiary count has expanded to include Greenworks (XGOLF) among roughly a dozen affiliates.

YG Entertainment remains the largest shareholder with a 30.22% stake, while HYBE sold its entire direct 7.67% holding via block trade in September 2025 but retains a 10.23% stake through subsidiary Weverse Company, keeping it as the second-largest shareholder.

HYBE still holds a 10.23% position in YG Plus through its subsidiary Weverse Company, making it the second-largest shareholder behind YG Entertainment, which holds 30.22%. This multi-label distribution network and the HYBE partnership differentiate the company from rivals such as SM's Dear U platform and JYP.

Earnings trend

Quarterly revenue · Operating profit

₩48.3B₩4.2B25Q2₩69.9B₩14.1B25Q3₩58.8B₩5.4B25Q4₩53.5B₩5.3B26Q1₩62.1B₩4.8B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩140.2B₩10.3B2022₩223.6B₩21.2B2023₩184.9B-₩700M2024₩236B₩32.3B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩48.3B	₩4.2B	8.7%
2025Q3	₩69.9B	₩14.1B	20.1%
2025Q4	₩58.8B	₩5.4B	9.1%
2026Q1	₩53.5B	₩5.3B	9.9%
2026Q2	₩62.1B	₩4.8B	7.7%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩140.2B	₩10.3B	₩11.6B	7.4%	8.2%	51.4%
2023	₩223.6B	₩21.2B	₩21.5B	9.5%	13.2%	35.1%
2024	₩184.9B	-₩700M	₩1.2B	−0.4%	0.7%	40.5%
2025	₩236B	₩32.3B	₩22.4B	13.7%	11.9%	40.7%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21

Earnings analysis

Consolidated revenue for 2025 reached KRW 236.0bn, up 27.6% from KRW 184.9bn in 2024, while operating profit swung to KRW 32.3bn from a KRW 0.7bn operating loss in 2024. Net income attributable to owners came to KRW 22.4bn in 2025, sharply higher than KRW 1.2bn in 2024.

By comparison, 2023 posted revenue of KRW 223.6bn, operating profit of KRW 21.2bn, and owners' net income of KRW 21.5bn, meaning 2025 essentially represented a recovery of profit levels after the 2024 dip.

In 2022, revenue was KRW 140.2bn and operating profit KRW 10.3bn, but there was a notable gap between owners' net income (KRW 11.6bn) and total net income (KRW 16.7bn), which appears attributable to swings in non-controlling interests.

On a quarterly basis, 3Q2025 was the strongest of the trailing four-quarter window (2025Q3-2026Q2), with revenue of KRW 69.9bn, operating profit of KRW 14.1bn, and owners' net income of KRW 10.0bn.

This eased to revenue of KRW 58.8bn, operating profit of KRW 5.4bn, and owners' net income of just KRW 1.7bn in 4Q2025, before owners' net income recovered to KRW 6.6bn in 1Q2026 on revenue of KRW 53.5bn and operating profit of KRW 5.3bn.

The trend softened again in 2Q2026, with revenue of KRW 62.1bn, operating profit of KRW 4.8bn, and owners' net income of KRW 2.0bn. This quarter-to-quarter unevenness stems from the business's dependence on the timing of major artists' comebacks and tours, such as Blackpink's.

Summing the trailing four quarters (2025Q3-2026Q2), owners' net income totals roughly KRW 20.2bn, close to the full-year 2025 figure of KRW 22.4bn.

Industry analysis

The K-pop industry's album/music distribution and artist merchandise markets have grown together, driven by expanding global fandom and the spread of hybrid concerts.

Despite the shift toward streaming-centric music consumption, physical album sales remain central to the K-pop economy, which provides a favorable backdrop for logistics and distribution operators like YG PLUS.

For HYBE, which does not operate its own domestic physical distribution infrastructure, YG Plus provides the logistics network needed to get albums from its labels into stores and online retail channels across South Korea, which is why HYBE renewed its domestic distribution agreement even after divesting its direct equity stake in 2025, extending an eight-year partnership.

In September 2025, HYBE sold its entire direct 7.67% stake in YG Plus for 38.22 billion won, citing portfolio optimization.

In terms of competitive positioning, SM Entertainment operates its own Dear U platform, JYP Entertainment has strengthened its own distribution and merchandise systems, and HYBE itself is building out merchandise and distribution capabilities through Weverse Shop, meaning reliance on third-party distributors like YG PLUS could diminish over the long run.

That said, partnerships spanning more than 600 labels help YG PLUS reduce its dependence on any single management company. The industry cycle is heavily influenced by the comeback and touring schedules of a handful of major artists, and the company's earnings are strongly correlated with that cycle.

Outlook

When reporting 2025 results, the company said it expected continued contributions from music/album distribution and merchandise sales, citing a planned Blackpink new album, Treasure's global tour, comebacks from major artists on external label IPs, and expanded distribution scheduled for the first half.

DS Investment & Securities analysts noted that although a detailed tour schedule had not yet been unveiled, they raised YG Entertainment's 2026 estimated consolidated operating profit from KRW 65 billion to KRW 95 billion, assuming conservative BIGBANG activity including album sales of 2 million copies and 20 shows, following producer Yang Hyun-suk's announcement of a BIGBANG 20th-anniversary global tour.

BabyMonster is set to release a mini-album in May and a full album around October, and will begin a second world tour in June that expands into the Americas, South America, Europe, and Oceania, with new idol group debuts also planned for autumn 2026.

Because these YG group artist activities feed directly into the album/music distribution and merchandise sales handled by YG PLUS, they represent tangible near-term catalysts.

The renewed domestic distribution agreement with HYBE is also expected to continue contributing distribution revenue tied to new releases from HYBE's labels.

That said, some of these schedules, including exact tour scale and release timing, remain unconfirmed, so the actual size and timing of revenue recognition will need to be verified through quarterly disclosures.

Overall, second-half 2026 results are likely to hinge on the pace of BabyMonster's tour, the timing of new group debuts, and the volume of releases from HYBE's labels.

Valuation

PER

10.0×

PBR

1.0×

ROE

10.9%

EPS

₩318

BPS

₩3,078

Dividend per share

₩30

YG PLUS moved from an operating loss in 2024 to a sizable profit in 2025, and its earnings-based valuation multiples remain sensitive to the annual earnings trajectory as a result. Relative to net asset value, the share price trades close to book value per share, without a pronounced premium or discount.

On the dividend side, a per-share cash dividend policy has been maintained, though the dividend yield appears to sit below the broader KOSPI market average.

Given the business's large quarter-to-quarter earnings swings, the valuation multiple the market assigns has tended to fluctuate along with individual quarters' earnings surprises or shortfalls.

Because the company's multi-year history has alternated between losses and profits, assessing the durability of earnings since the recent turnaround is arguably more informative than comparing valuation against a long-run multi-year average.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-21

Bull factors

From Loss to Profit: Earnings Normalization

After posting an operating loss in 2024, YG PLUS returned to profit with KRW 32.3bn in consolidated operating profit in 2025. Increased merchandise sales tied to the Blackpink world tour, along with expanded music/album distribution from BabyMonster and Treasure's new releases and external label IPs, drove the growth.

Improved performance at subsidiary YG Investment also contributed positively to annual net income. This can be read partly as a structural improvement from the expanding multi-label distribution model rather than a purely one-off event.

Eight-Year Distribution Partnership with HYBE Renewed

Although HYBE sold its entire direct stake in September 2025, it retained its 10.23% position through subsidiary Weverse Company and renewed the domestic album/music distribution agreement unchanged.

Because HYBE lacks its own domestic physical distribution infrastructure, it remains reliant on YG PLUS's logistics network, illustrating that the business partnership can persist independent of the equity relationship. This underpins continued distribution revenue contribution from new releases by HYBE's labels.

Multiple IP Activity Catalysts Scheduled for 2026

In a March 2026 report, DS Investment & Securities raised its 2026 operating profit estimate for YG Entertainment, citing the formalized BIGBANG 20th-anniversary global tour plan, BabyMonster's second world tour starting in June with expanded regions, and new group debuts.

Because these activities involve album releases and tour merchandise sales, they can flow directly into YG PLUS's distribution and merchandise revenue. Having multiple artist activities spread across the calendar can also help cushion the impact of any single act's schedule delay.

Bear factors

Business Structure Prone to Large Quarterly Swings

Owners' net income swung from KRW 10.0bn in 3Q2025 to just KRW 1.7bn in 4Q2025, then back up to KRW 6.6bn in 1Q2026 before falling again to KRW 2.0bn in 2Q2026, reflecting large quarter-to-quarter amplitude.

This stems from the business characteristic of specific artists' comeback and tour schedules clustering in particular quarters. Investors need to weigh both the annual earnings trend and individual quarterly figures together.

Symbolism of HYBE's Direct Stake Sale

In September 2025, HYBE disposed of its entire direct 7.67% stake in YG PLUS via block trade, citing 'investment portfolio optimization.' While the distribution agreement was maintained, the fact that a strategic partner like HYBE unwound its direct holding has been read by some as a signal of shifting priorities in the long-term relationship. How the remaining 10.23% stake held through Weverse Company is handled going forward also warrants monitoring.

Competitors Building Out Their Own Infrastructure

HYBE is strengthening its own merchandise and distribution capabilities through Weverse Shop, while SM has Dear U and JYP has its own systems. Over the long term, if major agencies internalize their own distribution and merchandise capabilities, YG PLUS's role as a third-party distributor could shrink. So far, however, cooperative relationships such as the renewed HYBE agreement have been maintained.

Risk factors

IP and Schedule Concentration Risk

Revenue and profit depend heavily on the comeback and tour schedules of a handful of core artists such as Blackpink, BabyMonster, and Treasure. If any single artist's activities are delayed or a tour is scaled back from expectations, it can directly affect that quarter's results. Whether new group debuts succeed commercially is also a source of uncertainty.

Governance and Related-Party Risk

With YG Entertainment as the largest shareholder (30.22%) and HYBE/Weverse Company as the second-largest (10.23%), the high proportion of distribution/merchandise transactions with related parties is a governance point worth noting.

Strategic changes by the controlling shareholder or key partners, such as stake sales or contract term changes, could affect earnings and the share price.

With the number of subsidiaries expanded to roughly a dozen, the impact of affiliate-level profit and loss swings on consolidated results also warrants ongoing monitoring.

Competitive Substitution Risk

Competing platforms such as HYBE's Weverse Shop and SM's Dear U are strengthening their own merchandise and distribution capabilities. Over the long term, if major agencies internalize distribution and merchandise operations, YG PLUS's market position as a third-party distributor could weaken.

To date, however, partnerships with more than 600 labels and the renewed HYBE agreement have offset much of this risk.

What to watch next

Around October 2026
Check whether and when BabyMonster releases its full album, and assess how much of the associated album/music distribution revenue is reflected.
Second half of 2026 (autumn)
Watch whether the previously flagged new boy group debut schedule is finalized and how the group's initial commercial reception affects merchandise and distribution revenue.
Around November 2026
The preliminary 3Q2026 earnings disclosure should be checked for margin recovery versus 2Q2026 and the extent to which BabyMonster tour revenue is reflected.
During the second half of 2026
Monitor the actual progress of BabyMonster's second world tour (expanded to the Americas, South America, Europe, and Oceania) and the scale of tour merchandise sales.

Overall view

YG PLUS overcame a 2024 operating loss to post a clear earnings recovery in 2025, with revenue of KRW 236.0bn and operating profit of KRW 32.3bn, underpinned by Blackpink world tour merchandise sales and expanded multi-label music distribution.

However, the pattern of results easing again in 4Q2025 and 2Q2026 after peaking in 3Q2025 confirms a business structure prone to large quarterly swings.

HYBE sold its entire direct stake in September 2025, but has maintained its partnership by keeping its holding through Weverse Company and renewing the domestic distribution agreement.

For 2026, multiple YG group IP activities including BabyMonster's world tour and new group debuts are scheduled, which will likely serve as additional earnings variables. Competitors' expansion of their own distribution and merchandise infrastructure remains a longer-term structural risk.

Investors should weigh the annual earnings recovery trend alongside quarter-to-quarter volatility and the actual realization of artist activity schedules.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.