The “BIG 3” entertainment companies (SM Ent, YG Ent, JYP Ent) accepted poor performance in the first half of 2020, but attention is being paid to whether they will turn the tie in the second half with the debut of their rookie groups and comeback of existing artists.
According to the Financial Supervisory Service’s electronic disclosure on May 18, SM Entertainment‘s consolidated first-quarter earnings recorded 144.7 billion won in sales and 1.7 billion won in operating profit. Compared to the previous year, sales rose 11 percent, but operating profit fell 40 percent. YG Entertainment’s sales also fell 14 percent to 52.8 billion won. Operating loss continued to fall to 2.1 billion won. Cube Entertainment also swung to a deficit of 5.1 billion won and 500 million won in operating losses, down 37.5 percent. In the case of JYP Entertainment’s, its operating profit was confirmed to have increased 132 percent to 13.4 billion won.
Difficulties among entertainment companies are expected to continue into the second quarter. Due to the COVID-19 crisis, their artists are unable to perform normal activities. SM is known to have no concerts scheduled for the second quarter and JYP for the second and third quarters. Lee Hwa Jung, a researcher at NH Investment & Securities Co., explained that sluggish concert and MD sales by entertainment companies will be inevitable.
Expectations are concentrated in the second half of 2020. At YG, the boy group TREASURE was confirmed to debut in July. At JYP, the Japanese girl group NIZI is scheduled to debut in the fourth quarter. Meanwhile, Cube Entertainment is preparing for a new male idol group.
Existing artists’ comeback is also expected to serve as momentum for the BIG 3. YG’s BLACKPINK and JYP’s TWICE are set to make a comeback in June. On top of that, YG’s BIGBANG is scheduled to participate in the U.S. music festival Coachella, which is likely to resume its activities in the second half.