Here’s How Much Korea’s Top 4 Agencies Made in 2016
Four of the top agencies released their financial information due to the entertainment labels public status, and here’s which was made the most.
A financial report recently released by the Financial Supervisory System detailed the revenue, operating profit, and net profit for SM Entertainment, YG Entertainment, JYP Entertainment, and FNC Entertainment based off their revenue.
Revenue was calculated on the amount each company brought in through concert tickets, event appearances, and overall sales. Operating profit was calculated on revenue deducted by operating expenses such as production fees, artist’s expenses and more. Finally, net profit was calculated through the operating profit with tax deducted.
Here’s how much each of the TOP4 agencies made in 2016:
SM Entertainment reported ₩349.8 billion KRW ($305.7 million USD) in revenue, with an operating profit of ₩20.7 billion ($18.09 million USD) and a net profit of ₩4.01 billion ($3.5 million USD).
This is a 7.51% increase compared to 2015 which brought in ₩325.4 billion ($284.3 million USD) in revenue. SM Entertainment explained why their operating profit was so low.
“Our operating profit was lower than expected due to the absences of both TXVQ and Super Junior, who were in the military.”
— SM Entertainment
YG Entertainment achieved it’s highest revenue amount in the history of the company in 2016 with ₩321.8 billion KRW ($281.2 million USD) in revenue, leading to an operating profit of ₩31.9 billion ($27.8 million USD) and a net profit of ₩14.0 billion ($12.2 million USD).
The company’s revenue increased by a staggering 66.6% compared to 2015.
“Our overseas sales have increased due to globalization of our artists in various regions around the world. However our net profit decreased by 41% due to an increase in taxes brought on by promoting in foreign countries.”
— YG Entertainment
While FNC Entertainment posted a record year based off of revenue with ₩91.4 billion KRW ($79.8 million USD), the company saw an overall loss as they had an operating deficit of ₩2.51 billion ($2.19 million USD) and a ₩net deficit of 6.41 billion ($5.36 million USD) .
FNC Entertainment attributed these losses to the company expanding its management portfolio to include not only artists but actors and entertainers too.
2016 was JYP Entertainment’s best year financially in the history of the company, setting records for revenue, operating profit, and net profit. While they may have only posted a revenue of ₩73.6 billion KRW ($64.3 million USD), they had an operating profit of ₩13.8 billion ($12.0 million USD).
The company’s net profit more than doubled compared to 2015 from ₩3.22 billion ($2.8 million USD) to ₩8.48 billion ($7.4 million USD). JYP Entertainment credited the year’s success to their artists.
“The sales for our artists’ new albums, both physically and digitally as well as ticket sales for overseas concerts and merchandise sales for all of our artists have all increased.”
— JYP Entertainment
Source: Star News